Who Is on Title?

A frequently raised issue is about who must be and who may be on title to a property. Where a mortgage is being registered, all the Borrowers on the mortgage must go on title as owners. It is therefore not possible for an individual to be a Borrower on the mortgage, to help with financing for example, without that individual also going on title. He/she must go on title. However, if the individual helping for financing purposes is only a Guarantor, not a Borrower, he/she may, but does not have, to go on title.

Unfortunately, for the purposes of obtaining financing, Guarantors are less common because lenders require the income of the person helping with financing to qualify the mortgage and, when they do, he/she is considered a Borrower, not a Guarantor. Also, very often an individual will sign the agreement but will not be on title for financing or other reasons. In these cases, unless an amendment is prepared, it is important to remember that this individual will have to sign at least a Direction regarding Title through the purchaser’s lawyer before closing.