A co-borrower is a person you are buying a home with, and you will live in that home together; you are also both equally obligated on the mortgage. A non-occupant co-borrower is someone that is helping you qualify for a loan, but they will not be living in the property. Most commonly, it is a parent that helps a child purchase a home in this manner, but of course there can be multiple other situations. A non-occupant co-borrower is equally obligated on the mortgage and they will be on title to the property as well, meaning that they have ownership rights to the home.
In contrast, a co-signer is added to a loan to help the primary borrower qualify (and are therefore obligated for payments), but they choose not to go on title and therefore have no ownership rights to the property.
In either case, the non-occupant co-borrower / co-signer are obligated to pay the loan, but the difference is in whether or not they have ownership rights to the home. These are some big questions to ask oneself, especially since there can be reassessment and transfer tax triggers down the road if any title holders are removed. Not all lenders will allow a true co-signer, so if this is in your best interest, working with a mortgage broker will allow you different lender options where you can secure a loan from a lender that does indeed allow for a true co-signer.
