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What are the risks when going guarantor for someone?

It is a big financial responsibility which is why it is important to get legal and financial advice so you can make a fully informed decision before becoming a guarantor. If at any time the buyer is unable to make their loan repayments, you will be responsible for any debt owed to the lender (for example the entire loan amount plus interest) or for a limited guarantee it could be just the portion of the loan that is subject to the guarantee. If you are unable to make the repayments, your home may be at risk if it was used as security. It may also affect your credit score if the repayments are not made on time and in full.

Going guarantor could also impact on your ability to sell your own house. Before being able to sell, you’ll need to be removed as guarantor or the loan that was guaranteed must be paid out in full. And if you wish to purchase property yourself, lenders will see that you are a guarantor, and this may impact your eligibility to secure a loan for yourself.

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Legal information about our rates
Our home loans are subject to credit criteria and eligibility requirements. Home loan interest rates are for new customers only and can change. Our comparison rates are based on a $150,000 loan amount over a 25 year term. They factor in fees associated with applying for the loan; ongoing fees and fees associated with leaving the loan. Our fixed loans roll to a variable principal and interest rate at the end of the fixed term. If the interest only period is not specified, the comparison rate is calculated on a one year period.

WARNING: The comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Tiimely Turnaround™
^Our turnaround times are up to 2x faster than the industry, based on a comparison of our average platform submit to approval time compared to industry submit to approval time, published here  (June 2023). Customer turnaround times are dependent on individual circumstances and may require an assessor to obtain more information.

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Tiimely FAQs and Guides
At Tiimely Home we are not financial advisers and recommend seeking independent financial and legal advice to check how the information we provide aligns with your individual circumstances.