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: 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 […]

Question: What Is an Example of a Guarantor? Answer: A common example of a guarantor is a parent acting as a guarantor for their student child’s first apartment. By co-signing the lease, the parent is legally obligated to pay the rent if the student fails to, providing financial security to the landlord. A Clear Example […]

Question: What Does Having a Guarantor Do? Answer: A guarantor legally agrees to pay your rent and cover any damages if you fail to do so. This provides financial security for the landlord, strengthening your rental application if you have a low income or poor credit history. The Role of a Guarantor in Your Lease […]

Question: Why Would Someone Be a Guarantor? Answer: Someone would become a guarantor to help a family member or friend secure a rental lease or mortgage they couldn’t qualify for on their own. This is common for applicants with insufficient income or a limited credit history, providing landlords or lenders with financial security. The Choice […]

Question: Is a Guarantor a Cosigner? Answer: No, a guarantor is not a cosigner. While often used interchangeably, they have different levels of liability. A cosigner is immediately responsible for rent payments alongside the tenant. A guarantor’s obligation to pay only begins after the tenant has defaulted. Guarantor vs Cosigner Applying for a lease or […]

Question: What Does It Mean To Be a Guarantor? Answer: Being a guarantor means you are making a legal promise to take responsibility for someone else’s debt, like a mortgage or rental lease. If the primary person defaults on their payments, you are legally obligated to pay the full amount owed to the lender or […]

Question: What Is a Guarantor in a Mortgage? Answer: A guarantor on a mortgage is someone who legally promises to pay your mortgage if you default on your payments. Their strong financial standing helps you qualify for the loan, but unlike a co-signer, they do not have any ownership rights to the property. The Role […]

The Guarantor Role in Real Estate Securing a rental property or a mortgage can be a challenge. Landlords and lenders need assurance that you can meet your financial obligations. If you have a limited credit history, a lower income, or are new to the country, you may need extra support. This is where understanding what […]