What is the difference between a co-borrower and guarantor?

A co-borrower is on the Title with the main borrower. A guarantor is not on the Title, but is responsible for the

loan. It is rare for a lender to allow a guarantor, so most require individuals to be co-borrowers. There are some

considerations on tax and estate in each situation.

When a borrower is not on title, but on the loan:

Pros:

• You can qualify for exemption from Property Transfer Tax on another purchase if you ever buy again.
• The main borrower may qualify for an exemption with only them on title.



Cons:

• In the case of a Separation, there can be some more involved legal work to split the matrimonial home.
• In the case of a death, the property does not automatically go to the other borrower, so this can create additional estate problems.