Serving as a guarantor is a big mitzvah but also a responsibility. We created this section of our website to answer frequently asked questions about our guarantor requirements and process. Please feel free to reach out to us at 604-428-2832 if you have any additional questions, comments or concerns.
Frequently Asked Questions
What is a guarantor?
A guarantor is someone who agrees to be responsible for the debt of a borrower should they default on their loan payments.
Who can serve as a guarantor?
In order to serve as a guarantor, one must:
Why does HFLA need guarantors?
Guarantors play an integral role in supporting our lending model. Most loans are repaid by the loan recipient but guarantors make our loans more secure.
Are there income requirements for guarantors?
There are no specific income requirements but guarantors must have a steady monthly income source that would allow them to comfortably take on the financial responsibility of guaranteeing a loan.
What type of information are guarantors asked to provide?
An HFLA board member will call you to assess your suitability to serve in this capacity and explain the responsibilities involved. They will ask some financial questions to determine if you can afford to take on the debt if the borrower defaults. The call usually takes no more than five minutes.
What documents does a guarantor have to sign?
If the loan is approved, the guarantor will be asked to sign a loan guarantee for the full loan amount.
What information am I entitled to if I serve as a guarantor?
Guarantors are entitled to full disclosure on the details of the loan, including the loans current balance, the monthly repayment rate and the estimated loan repayment date.
Can I apply for a loan while I am a guarantor?
No, you cannot be a guarantor and a borrower at the same time. Please contact our office if you are a guarantor in need of a loan so that we can see how we many be able to help you.
Can I act as a guarantor for more than one loan at a time?
No, you can only serve as a guarantor for one borrower at a time.