From time to time I’m asked, “What’s the difference between a Co-Signer and a Guarantor for a mortgage?”
What is a Co-Signer or Guarantor for a mortgage?
Basically, a co-signer is a co-owner, he/she is registered on the title and is equally accountable for payments. While a guarantor personally guarantees payments will be made if the original applicant defaults, but he/she has no claim to the property because they’re not on title.
Typically a co-signer will be on an application if additional income is needed for debt servicing. A Guarantor will be used if the main applicant has certain credit blemishes or hasn’t established credit.
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