A guarantor’s responsibility is to make loan payments if the borrower doesn't.
If a borrower were to enter into a consumer proposal, go bankrupt, simply stop paying or pass away, then the guarantor becomes solely responsible for each monthly repayment until the loan is completed.
If, for ANY reason, payment isn't made by the borrower we will attempt to collect from their secondary payment method and then from the guarantor in line with their agreement. It's important that payments are made in full and on time each month, this is the borrower's contractual agreement and missing payments may damage their credit rating.
Before any loan is paid out, we'll make sure that the guarantor trusts the borrower to make their payments on time each month, that they both agree they can both afford to pay when needed and that the guarantor is comfortable paying on behalf of the borrower if something goes wrong.