Frequently Asked Questions
F A Q
Can I obtain a Guarantor if my credit score is low?
Yes. You can be eligible for our service even with a low credit score. In fact, we could argue that people with low credit scores are often more responsible with their rent payments. In many cases, a lower credit score means that an individual prefers to have a delinquent credit card rather than be late on their rent.
Can I obtain a Guarantor if my income is low?
Yes. In this day and age, it’s not uncommon for people to spend half of their income or more on rent. This doesn’t make you an unreliable tenant at all. While landlords still prefer tenants with an income-to-rent ratio of 3 or above, we believe this metric is outdated.
What might prevent me from obtaining a Guarantor?
While Guarantors.ca is under no obligation to disclose the reason for ineligibility, the most common reason for rejection is inaccurate or incomplete information provided by tenants. If the information you provide is not correct, we might deem you ineligible for the service. Therefore, it is essential to be truthful when filling out our online forms.
Who is the Guarantor?
A guarantor is an independent individual with a good credit score and stable income who agrees to cover any rent arrears you might incur during your lease term. This provides your potential landlord with extra peace of mind.
What is the Guarantor’s Information Package?
Once you pass our background check, we will match you with a Guarantor. The Guarantor will send you the Guarantor’s Information Package, which you can attach to your rental application and send to your future landlord for verification. The Guarantor’s Information Package is a set of documents that includes the Guarantor’s name, address, date of birth, credit score, proof of income, and a sample Guarantor Agreement to be signed with your prospective landlord. Some information in these documents may be redacted when sent to you but will be revealed upon the direct request of your prospective landlord for the purpose of running a credit check on the Guarantor.
Does the Guarantor pay my rent for me if I can’t?
No. Guarantors don’t pay your rent but will step in if you default after the landlord obtains a judgment against you.
Can I skip rent payments if I have a guarantor?
No. If you are late with your rent payments or stop paying altogether, your landlord can file with the Landlord and Tenant Board and have you evicted. The Guarantor does not pay your rent for you; they only step in if you default after the landlord obtains a judgment against you.
Can I prevent eviction for non-payment if I have a guarantor?
No. The result of unpaid rent or consistent late payments is your eviction. Once you are evicted, your landlord may file with the Small Claims Court and garnish your wages. The Guarantor comes into the picture only if your landlord cannot collect what you owe.
Does having a Guarantor guarantee that my rental application will be accepted?
No. Different landlords use different criteria for selecting tenants. Even with a Guarantor, the prospective landlord may choose not to rent to you for various reasons that are impossible to predict.
Can you help me in my search for a new place?
No. Guarantors.ca does not act as a real estate agent, so we cannot assist in your search.
What are the responsibilities of a Guarantor?
If you are eligible for our services, you will be matched with a qualified Guarantor. Typically the Guarantor is responsible for providing your potential landlords with their credit score, proof of income, and other information regarding their financial stability and creditworthiness. They are also responsible for timely communication with both you and the potential landlord.
Can a Guarantor refuse to provide information about their finances?
Yes. Guarantors are independent individuals, and they have the right to refuse to provide sensitive information. For instance, if a landlord asks for their Social Insurance Number, they can refuse if they feel the request is too intrusive.
How much does it cost?
Typically, Guarantors charge 30%-50% of your first month’s rent; however, since guarantors are independent individuals, in some situations they may decide to charge more.
When do I have to pay?
You pay your Guarantor’s fee only when your new landlord agrees to sign a lease. This fee is payable directly to the Guarantor. If your landlord backs out of the deal before signing the lease, the Guarantor will return the fee minus a 3% transaction charge.
There is a small upfront fee for the background check designed to confirm your eligibility for the service. The non-refundable background check fee is $93 + HST, which covers the cost of verifying the information you’ve provided.
How can I become a Guarantor?
Easily. Fill out our online form, but keep in mind that Guarantors must meet higher standards than tenants. To be eligible to serve as a Guarantor, you need a credit score above 700, and your income-to-rent ratio must be at least 3:1. Our goal is to help renters with low credit scores and low incomes, so the Guarantor’s role is to boost landlords’ confidence through above-average financial stability.