Who qualifies as a guarantor?

A guarantor is a person who will jointly sign an apartment lease agreement with a tenant, guaranteeing to pay rent if the tenant fails to do so. The guarantor is usually a parent, family member or close friend who is willing to be legally responsible for the rented apartment. Being a guarantor involves helping another person get credit, such as a loan or mortgage. By acting as a guarantor, you “guarantee someone else's loan or mortgage by promising to repay the debt if you can't afford it.

It is advisable to only accept to be a guarantor of someone you know well. Often, parents act as guarantors for their children, to help them take the first step on the property ladder. A guarantor is a financial term that describes a person who promises to repay a borrower's debt in the event that the borrower defaults on his loan obligation. Guarantors pledge their own assets as collateral against loans.

In rare cases, individuals act as their own guarantors, committing their own assets against the loan. The term guarantor is often exchanged for the term surety. Revenue %26 Credit The main requirements for a guarantor include a substantial level of income and a strong credit history. A guarantor's annual income should generally be at least 80 to 90 times the monthly rent.

The credit must have minimal or no problems (a score of more than 700 is generally considered positive). While these are all standard requirements, each landlord or property management company is different, so you should consider the requirements in your rental application. A guarantor is usually needed when a prospective tenant does not meet the requirements of a rental application, including proof of income or lack of credit history. Sometimes, you may be asked for a guarantor if you simply don't meet qualification standards or even if you meet them, but something in your profile causes doubts.

You can mail your application and photographs to another person you know within Canada who qualifies as a guarantor and ask that person to sign for you. If a tenant does not have someone close to them who qualifies to be a guarantor, there are guarantor service companies available. Qualification standards are simply the minimum requirements that a tenant must meet, usually set by the landlord or property manager, to obtain approval in a given building. Different companies have different rating standards, but they generally make it easier to qualify for an apartment than a New York City landlord.

Ryan White
Ryan White

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