Because banks feel that borrowers are unqualified in some aspects, they will refuse to lend or ask for additional guarantees. For borrowers with poor qualifications, banks often ask for guarantors or mortgage properties. During this period, the borrower needs to pay relevant fees. Or when the borrower's repayment ability is insufficient, the bank may require to increase the down payment or the loan interest rate in addition to providing guarantee.

Do you need a guarantor to buy a house with a loan?

When applying for a housing loan, if the borrower has enough income or a good credit record, then the loan is generally easier to get approval.

However, if the borrower's income is not enough, or his credit history is not good, and the down payment is not enough, the lending institution will ask the borrower to find a guarantor to personally bear the debt of the house. If the borrower fails to repay the loan, the guarantor is liable for repayment. Before committing to be a guarantor, you must think clearly, because if you sign the money and debt guarantee, you will be personally responsible for paying off the debts to the lending institution.

Even if the relationship between the guarantor and the debtor changes, for example, the husband guarantees his wife to apply for a house loan, and eventually they divorce, the guarantee will not be affected by the dissolution of the marriage relationship, and it will still be valid. In other words, once the guarantor signs as a guarantor, he becomes a guarantor, unless the borrower is approved by the lending institution to cancel the guarantor qualification. The mortgage guarantor shall bear all the responsibilities. Under normal circumstances, the borrower repays the loan by himself, and the guarantor does not have to worry about it. However, the loan amount and monthly payment borrowed by the borrower will generally be displayed in the credit record of the guarantor.

What is mortgage guarantee?

When applying for a housing loan, if the borrower has enough income or a good credit record, then a guarantor is needed, and the loan is generally easier to get approval.

However, if the borrower's income is not enough, or his credit history is not good, and the down payment is not enough, the lending institution will ask the borrower to find a guarantor to personally bear the debt of the house. Common mortgage guarantors include parents as guarantors for children, spouses as guarantors, brothers and sisters as guarantors, or friends as guarantors.