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ARTICLE · 14 APRIL 2015

Checklist: Going guarantor for a loan?

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The article includes six questions that you should ask before you sign to be a guarantor and you must get legal advice.

AustraliaFinance and Banking
Murray Thornhill
Murray Thornhill
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Going Guarantor? Six questions to ask before you sign to be a guarantor

It is now a common requirement of lenders that a guarantor receive independent legal advice on guarantee documents. The banks require a solicitor to sign a Legal Advice Certificate confirming the advice given. This certificate can form part of the guarantee or may be a separate document.

Before you agree to go guarantor it is important to remember that as guarantor you will be stepping into the shoes of the borrower in the event they are unable to satisfy the terms of the contract with the lender. Below are some questions that you may want to ask before you agree to be a guarantor:

  1. What is a Guarantee?

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