In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
An important distinction to remember is that a co-borrower is initially liable for the debt. A guarantor, on the other hand, is not liable unless the underlying borrower defaults and the lender pursues collection efforts against the borrower, depending on the terms of the guaranty. As a result, a lender pursuing a guarantor must typically go through a two-step legal process of proving the borrower's default and establishing the guarantor's liability under the guaranty.
Adding co-borrower or a guarantor can significantly increase the chance that the primary applicant will secure finance. Before you go ahead with a loan, it is important that you understand the difference between the role of a co-borrower and a guarantor. You also need to understand the implications and possible consequences of adding a co-borrower or guarantor to your loan application and loan term.
Ultimately, the difference between a co-borrower and a guarantor is that a guarantor is responsible for the debt repayment if the borrower (applicant) is unable to pay but has no benefits of owning any part of the property. So, The borrower has primary responsibility to pay the debt, and the guarantor has secondary responsibility for the debt.
