Both credit profiles matter
Lenders look at both applicants. The stronger income helps, but the weaker credit score often sets the pricing, and in some cases the lender. If one partner has collections or recent late payments, it is worth six months of repair before applying, or structuring the file around the stronger applicant where the income supports it.
Unequal down payments need to be documented
If one person contributes far more of the down payment, decide upfront whether that is a gift to the relationship or a claim on the property. Joint tenancy splits everything equally regardless of contribution. Tenancy in common lets you register unequal shares. A lawyer can also prepare a cohabitation or co-ownership agreement recording who put in what.
- Joint tenancy: equal ownership with right of survivorship
- Tenants in common: specified shares, each estate passes separately
- A written agreement costs far less than untangling it later
Gifted down payments have paperwork
Family gifts are common and completely acceptable to lenders, but they need a signed gift letter confirming the money is not a loan, plus proof the funds arrived. Money that appears in an account without explanation will hold up an approval.
Decide how you will carry the payment
Proportional to income or split evenly? What happens if one income stops for parental leave or a layoff? Agreeing on the answer in advance turns a stressful moment into an administrative one. Mortgage and life insurance on both borrowers is worth pricing at the same time.
Plan for the unlikely
If the relationship ends, the mortgage does not. A buyout requires the remaining partner to qualify alone, which is a different approval. Knowing that in advance often shapes how much house a couple buys.
Frequently asked questions
- Can we buy together if only one of us has good credit?
- Often yes, but pricing and lender options narrow. Sometimes the stronger applicant applies alone and the other is added later after credit improves.
- Do both incomes have to be full time?
- No. Part-time, contract, and self-employed income can all be used with the right documentation and the right lender.
Talk to a Toronto private mortgage specialist
We arrange equity-based financing across Toronto and the GTA, whether you need a first position from a private lender or a second mortgage behind the bank you already have.