Real Estate News: The Latest, Top Articles in Ontario Canada

What a Realtor Does For You Many people use the terms “real estate agent” and “Realtor” interchangeably. While the terms are related, they hold a key distinction. Understanding the Role and Requirements of Realtors helps you choose the right professional for your property journey. Every home buyer and seller should know who they are working […]

Understanding Real Estate Agent Fees and Commissions The complexity of realtor fees and commissions can feel overwhelming for both first-time buyers and seasoned property investors. However, it is an essential part of the real estate process that we cannot ignore. In this article, we will guide you through the intricate web of these fees and […]

Effective Strategies for High-End Property Sales Selling a high-value home requires a distinct and sophisticated approach. The standard methods used for typical properties are often insufficient for the premium market. A successful transaction depends on a deep understanding of the affluent buyer, impeccable presentation, and a precisely executed plan. Effective luxury property sales and marketing […]

Realtor Selection and Relationship – Creating a Successful Partnership Choosing a realtor is more than a simple decision—it is a strategic maneuver in the journey of real estate. An adept realtor holds the power to simplify the process of buying or selling a home, to ensure you get the best deal possible, and to convert […]

Question: How to Avoid Capital Gains Tax on Property in Canada? Answer: To avoid capital gains tax on property in Canada, designate the property as your principal residence, use the principal residence exemption, or reinvest in another property within specified guidelines. Capital Gains Tax Canada: Strategies for Canadian Homeowners In Canada, selling a property can […]

The Difference Between Condos and Apartments Choosing a place to live in the city can be a thrilling yet daunting task. With so many options available, it’s important to understand condos vs apartments to find the living situation that best suits your needs and lifestyle. For more information Let’s Talk Ownership: Renting vs Buying The […]

Question: Do Guarantors Get Credit Checked? Answer: Yes, guarantors are almost always credit checked. Landlords or lenders must verify you are financially capable of covering payments if the applicant defaults. This check of your credit score and history requires your explicit consent before they can proceed. The Truth About Guarantor Credit Checks Agreeing to be […]

Question: Does Being a Guarantor Affect Credit Score? Answer: Yes, being a guarantor can affect your credit score. The loan or lease appears on your credit report as your own. While timely payments can help your score, any missed payments by the primary borrower will directly damage it. It also increases your debt load, affecting […]

Question: Can a Guarantor Have Bad Credit? Answer: No, a guarantor cannot have bad credit. While technically possible, a landlord will almost certainly reject them. The purpose of a guarantor is to provide financial security, so landlords require applicants to have a strong credit history and stable income to be approved for a tenancy agreement. […]

Question: Do You Need a Good Credit Score if You Have a Guarantor? Answer: You do not always have to have a good credit score, as a strong guarantor reduces the risk for landlords or lenders. However, your own credit history will still be reviewed. A very poor score or negative history can still impact […]

Question: How Can a Guarantor Protect Themselves? Answer: A guarantor can protect themselves by having a lawyer or paralegal review the lease and guarantee agreement. It’s crucial to negotiate limits on your liability, such as confining the guarantee to the initial lease term and capping the total financial amount before you sign any documents. Steps […]

Question: What are the Pros And Cons of Being a Guarantor? Answer: The primary pro is helping someone secure a property. The cons are significant: you are legally responsible for the entire debt if they default, which can damage your credit score and reduce your own ability to borrow. Your personal assets, including your home, […]

Question: How Long is a Guarantor Liable? Answer: A guarantor is typically liable for the entire tenancy, including the initial term and any subsequent renewals or month-to-month continuation. This obligation only ends when the tenant vacates and settles all outstanding rent and damages, as specified in the guarantee agreement. The Full Term of a Guarantor’s […]

Question: What are the Risks of Being a Guarantor? Answer: Some of the risks of being a guarantor include: You are legally responsible for the entire debt if the borrower defaults, including all missed payments and associated costs. This can damage your credit score, limit your ability to get your own mortgage, and may lead […]

Question: Can a Guarantor Get in Trouble? Answer: Yes, a guarantor can get in trouble. A guarantor is legally responsible for the tenant’s financial obligations, like unpaid rent or damages. If the tenant defaults, the landlord can take legal action directly against the guarantor, potentially damaging their finances and credit score. The Real Risks of […]

Question: Can a Friend Act as a Guarantor? Answer: Yes, a friend can act as a guarantor for a lease or mortgage. Landlords and lenders focus on financial qualifications, not the relationship. Your friend will need a strong credit score and sufficient income, and must agree to be legally responsible for payments if you default. […]

Question: Can My Guarantor be a Family Member? Answer: Yes, a family member can absolutely be your guarantor. Landlords are primarily concerned with their financial qualifications, such as a strong credit score and sufficient income, not their relationship to you. As long as they meet the landlord’s requirements, they are a suitable choice. Thinking About […]

Question: Who is the Best Person to be a Guarantor? Answer: The best person to be a guarantor is a Canadian resident, typically a close family member, with a strong credit score, stable income, and minimal debt. They must willingly accept the full legal and financial responsibility for the lease if you default. Finding the […]

Question: Who Can Be a Guarantor in Canada? Answer: A guarantor is typically a Canadian resident with a strong credit history and stable income, sufficient to cover rent or mortgage payments if you default. They must be of legal age, financially secure, and willing to sign a legally binding agreement accepting full financial responsibility. Finding […]

Question: What Happens to the Guarantor if the Borrower Dies? Answer: If the borrower dies, the guarantor’s legal obligation continues. The lender will first attempt to recover the debt from the deceased’s estate. If the estate’s assets are insufficient to cover the outstanding balance, the guarantor is responsible for repaying the remaining amount as per […]

Question: Does a Guarantor Lower Interest Rates? Answer: A guarantor does not directly lower interest rates. A guarantor’s primary role is helping you qualify for a mortgage by reducing the lender’s risk. While a stronger application can lead to more favourable terms, it doesn’t automatically guarantee a lower interest rate. Exploring How a Guarantor Can […]

Question: What are the Risks of Being a Guarantor on a Mortgage? Answer: Risks of being a guarantor on a mortgage include: You are fully liable for the entire mortgage if the borrower defaults. The loan appears on your credit report, reducing your own borrowing capacity for future loans. Lenders can take legal action directly […]

Question: What are the Disadvantages of Being a Guarantor on a Mortgage? Answer: Disadvantages of being a guarantor on a mortgage include: You are fully liable for the entire mortgage if the borrower defaults. The loan appears on your credit report, reducing your own borrowing capacity for future loans. Lenders can take legal action directly […]

Question: Does a Mortgage Guarantor Go on Title? Answer: No, a guarantor’s name does not go on the property title. Their role is to guarantee the mortgage debt if the borrower defaults, which does not grant them ownership rights. Their name is on the mortgage agreement, not the home’s official title. A Mortgage Guarantor’s Place […]

Question: How Do I Remove a Guarantor From a Mortgage? Answer: To remove a guarantor from a mortgage, you must re-qualify for the mortgage on your own. This typically involves refinancing the loan solely in your name or applying for a guarantor release from your lender. You’ll need to prove you have sufficient income and […]

Question: Does a Mortgage Guarantor Go on Title? Answer: No, a guarantor’s name does not go on the property title. Their role is to guarantee the mortgage debt if the borrower defaults, which does not grant them ownership rights. Their name is on the mortgage agreement, not the home’s official title. A Mortgage Guarantor’s Place […]

Question: How Much Can a Guarantor Increase Your Mortgage? Answer: A guarantor doesn’t increase your mortgage by a fixed amount. Their income and strong credit are combined with yours, which can substantially increase your borrowing power. The final amount depends entirely on the guarantor’s financial strength and the lender’s assessment. How a Guarantor Can Boost […]

Question: Does Being a Guarantor Affect My Mortgage? Answer: Yes, being a guarantor can affect your mortgage. Lenders consider the debt you’ve guaranteed as a potential liability. They will include it when calculating your debt service ratios, which can reduce the mortgage amount you qualify for or even result in your application being declined. How […]

Question: Can a Bank Recover Money From a Guarantor? Answer: Yes, a bank can recover money from a guarantor. When a borrower defaults on their loan, the bank can legally pursue the guarantor for the outstanding debt. The guarantee is a binding contract, making the guarantor fully responsible for repayment, including any interest and associated […]

Question: Can You Remove Yourself as a Guarantor? Answer: It is difficult to remove yourself as a guarantor as the agreement is legally binding. Release requires the landlord’s or lender’s express consent, which may be granted if the borrower’s financial standing improves or a suitable replacement is found. Review your original agreement for specific terms. […]

Question: How Long Does a Guarantor Stay on a Loan? Answer: A guarantor stays on a loan for the entire life of the loan until it’s fully repaid. They can only be removed if the primary borrower refinances the loan on their own or gets the lender’s formal approval to release them. The Duration of […]

Question: Can I Use Anyone as a Guarantor? Answer: No, you cannot use just anyone as a guarantor. A guarantor must be approved by the landlord and meet their specific criteria. This typically includes having a strong credit history, stable income, and Canadian residency. They must be financially capable of covering your rent if you […]