Best way to Compensate Cosigner on Mortgage

[Meagan Peters]

Hello everyone!

I'm about to put in an offer on a duplex in Moncton, NB but will need a cosigner for the mortgage, as I do not qualify (I just graduated university and haven't had a stable income for long enough).

The purchase price is 380k and I'm doing a 5% down, owner occupied loan. I have enough capital for the down payment, closing costs, renos, etc. and will be handling everything else as well (finding/screening tenants, management, etc.) so essentially all I need is someone to cosign on the mortgage.

My question is: what is a reasonable/fair compensation to offer the cosigner? I know everyone will say "it's whatever you two agree on", but I would like to have something to offer, as I'll be presenting this deal/opportunity to multiple people and want to make it seem beneficial to them.

I was thinking it could make sense to give them part equity in the property, but I'd love to hear any insight/suggestions from anyone who has many been in a similar situation or if you imagine yourself as the cosigner, what would you feel would be a fair compensation.

Thank you!

[Nicholas L.]

@Meagan Peters

there's no need to do something complicated or give up equity this early in your investing journey.

if you can't find a co-signer who is a family member who will co-sign just to assist you without compensation... then don't move forward.