Meet Fred and Harold: It’s About Creating Stability

What Fred and Harold Wanted

Fred and Harold were not a couple. They were father and son.

Fred is in his 70s. Harold is in his 40s. Together, they decided they wanted to purchase a home. Not an investment property. Not a quick flip. A home that would bring stability, comfort, and a sense of security for both of them.

Like many buyers, they started with the excitement of finding the right property. But once they found the home they wanted, the next step became figuring out how to make the numbers work.

What We Discovered

The application was tight.

We had enough overall cash flow to support the mortgage comfortably in real life, but not all income can be used for mortgage qualifying purposes. That’s something many people don’t realize.

There is qualifying income, income lenders can formally use on an application, and then there is non-qualifying income. That can include side gigs, investment income that fluctuates, or cash flow that exists but does not meet lender consistency requirements.

In Fred and Harold’s case, I knew there were additional financial resources in the background that supported the application, even though they could not fully be used for lender qualifying.

Normally, I prefer stronger breathing room in mortgage applications because I want clients positioned for long-term success. But every file has a story behind the numbers, and sometimes the human side matters as much as the ratios.

What We Changed

To bring the approval into range, we made a few strategic adjustments.

Instead of using a fixed rate mortgage, we moved to an adjustable rate because the stress test qualification was lower and allowed more flexibility.

We also adjusted some liabilities and modified the down payment structure to improve the ratios and strengthen the application overall.

The goal was not to force an approval. The goal was to responsibly structure the file in a way that reflected the clients’ full financial reality.

The Bigger Conversation Nobody Talks About

One of the most important conversations when purchasing property with another person is discussing what happens if the relationship ends.

All relationships end.

Sometimes they end because we want them to. Divorce, separation, friendships changing, family disagreements. Sometimes they end through death. Whether we are purposefully ending a relationship or facing the loss of someone we love, there needs to be a plan for what happens to the property afterwards.

This applies whether the relationship is marriage, common law, friendship, siblings, parent and child, or business partners.

When entering into a mortgage together, I believe it’s important to go in with the outcome in mind. What happens if something changes in the relationship? Because eventually, something always does.

My suggestion is to create a cohabitation agreement or ownership agreement early, while everyone still likes each other and has good thoughts toward one another, not later during conflict, grief, stress, or illness.

That agreement can be prepared by a lawyer, a mediator, or even drafted privately and professionally notarized afterwards. The important part is having something in place that explains how the property will be handled if the relationship ends.

Other important considerations include:

• How title will be registered
• Whether ownership should be joint tenants or tenants in common
• What happens if one party wants to sell
• What happens if one party dies
• Whether life insurance should be in place to protect the surviving owner
• How land transfer tax implications may affect future ownership changes

None of these conversations are mortgage requirements. They are simply sensible planning conversations that help preserve relationships and reduce conflict later.

How Things Turned Out

In the end, we secured the approval with an empathetic underwriter who understood the full picture and reviewed the file thoughtfully.

Fred and Harold moved into their new home together.

And that’s the part worth remembering.

Sometimes a mortgage is not about buying bigger or building wealth.

Sometimes it’s about creating stability. A safe place to land. A home that brings comfort and peace at the end of the day.

Sometimes that’s the most important reason of all.

Joint Tenants vs. Tenants in Common

Joint Tenants:

In Canada, joint tenancy means each owner has equal ownership of the property. If one owner dies, their ownership automatically transfers to the surviving owner through the right of survivour-ship. The deceased owner’s share does not form part of their estate.

Joint tenancy is commonly used by married couples or close family members who intend for the surviving owner to inherit the property automatically.

Tenants in Common:

Tenants in common means each owner holds a separate ownership share in the property. Ownership percentages can be equal or unequal. If one owner dies, their share becomes part of their estate and passes according to their will or estate laws.

Tenants in common is often used when owners contribute different amounts toward the purchase or when they want greater control over how their share is handled in the future.