What is the difference between a co-borrower and guarantor?
Joel Olson • February 13, 2017
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.
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.
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