A guarantor can make the difference between being approved or declined for a mortgage — especially when credit or income is not strong enough on its own. But guarantors take on significant risk, and the rules are very different from co-signing.

See why understanding the guarantor role is essential before moving forward. 👇

Before agreeing to add a guarantor, make sure everyone involved understands the legal, financial, and long-term responsibilities.

1️⃣ A Guarantor Is on the Mortgage — Not the Title

A guarantor guarantees repayment but does not own the property. 

✔️ their name is on the mortgage 

✔️ they are not on the title 

✔️ lenders often require the guarantor to be a spouse 

With a co-signer, the person is both on the mortgage and the property title. This difference impacts ownership rights and legal protection.

2️⃣ Guarantors Take On Full Financial Responsibility

If the borrower defaults, the guarantor becomes 100% responsible for the entire loan. 

✔️ full credit check required 

✔️ full income verification 

✔️ full liability and asset disclosure 

✔️ legal responsibility for payments 

Because the risk is high, guarantors should seek independent legal advice before signing anything — ideally from a lawyer not involved in the mortgage transaction.

3️⃣ Being a Guarantor Can Limit Your Future Borrowing

Taking on this responsibility may impact your ability to borrow later. 

✔️ mortgage appears on your credit profile 

✔️ reduces borrowing capacity for your own loans 

✔️ may affect approval for future mortgages 

Guarantors should consider their own financial goals, stability, and risk tolerance before agreeing to guarantee someone else’s debt.

4️⃣ Your Banking Relationship Can Influence Whether a Guarantor Is Needed

Some lenders may waive the requirement depending on your history. 

✔️ strong repayment history may help 

✔️ long-standing banking relationship matters 

✔️ internal lending policies can vary 

While not guaranteed, it’s something your mortgage broker can evaluate to see if alternatives exist.

💬 Final Thought

A guarantor can help strengthen a mortgage application when income or credit alone isn’t enough — but it comes with serious legal and financial obligations. Understanding the risks, responsibilities, and long-term impact is crucial for both the borrower and the guarantor.

If you’d like us to review your situation and determine whether a guarantor is needed or if other options exist, send The Frontline Mortgage Group a message anytime.