A mortgage with a guarantor is a type of home loan that allows individuals with limited income or credit history to qualify for a mortgage by involving a guarantor. A guarantor is typically a family member or close friend who agrees to take on the financial responsibility if the borrower is unable to make mortgage payments. The guarantor provides an added layer of security to the lender, giving them confidence to approve the mortgage application.
This arrangement can open doors for homebuyers who may not meet the strict lending criteria on their own, enabling them to access favourable mortgage terms and achieve their homeownership goals. It’s important to note that the role of a guarantor involves a significant commitment, as they become legally liable for the mortgage in the event of default.