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A guarantor is a person who can confirm your identity when you are applying for registration under the Indian Act or a secure status card as an adult or as the parent or legal guardian of a child or dependent adult.
A tenant should ideally not seek multiple guarantors. The guarantor system is built on the premise of a single individual, preferably with a strong financial foundation, taking responsibility for the rent if the tenant fails to meet their obligations.
The lender needs to know the guarantor would be able to deal with any loan or mortgage arrears. Because of this, guarantors are sometimes asked to provide proof they're in work or have sufficient assets (such as a property) to cover the full amount owed in the loan or mortgage.
The primary difference between a co-signer and a guarantor is how soon each individual becomes responsible for the borrower's debt. A co-signer is responsible for every payment that a borrower misses. However, a guarantor only assumes responsibility if the borrower falls into total default.
The lender needs to know the guarantor would be able to deal with any loan or mortgage arrears. Because of this, guarantors are sometimes asked to provide proof they're in work or have sufficient assets (such as a property) to cover the full amount owed in the loan or mortgage.