Frequently Asked Questions
What are the risks of being a co-signer or guarantor in Canada?
As a co-signer or guarantor, you are legally liable if the primary person defaults. This means unpaid rent, missed loan payments, or damages could become your financial responsibility. It can also affect your credit score. Never co-sign for someone unless you trust them completely and can afford to cover the obligation yourself.
Can a co-signer or guarantor be removed from a lease?
Removing a co-signer or guarantor from a lease or loan typically requires the lender or landlord's agreement and often involves the primary applicant requalifying on their own. This varies by province and by the terms of the original agreement.
Does a guarantor need to live in Canada?
Most Canadian landlords and lenders require the guarantor to be a Canadian resident or citizen. International guarantors are generally not accepted because enforcing the agreement across borders is difficult.
Do landlords in Canada require a guarantor?
Not always — but many landlords request a guarantor when a tenant has no Canadian credit history, limited income, or is a student. It is especially common for newcomers and first-time renters in cities like Toronto, Vancouver, and Ottawa.
Does this letter need to be notarized?
Some landlords and lenders in Canada may request a notarized guarantor letter, especially for high-value leases or loans. A signed letter is usually sufficient for standard rental applications, but always confirm with the requesting party.