If you act as a guarantor for someone else’s home loan, will it affect your own home loan?

Guarantees now bear joint and several liability, and will be calculated as liabilities during approval. Therefore, if you guarantee others, it is equivalent to increasing your own liabilities. In this case, it will have a certain impact when you apply for a loan yourself.

Does a loan guarantor have an impact on your own loan?

Being a guarantor will definitely affect your own loan. For example, based on your property and income analysis, your loan limit is 1 million. But if you guarantee 500,000 for others, you can only borrow 500,000 at most. Because in the eyes of the bank, your guarantee for others is also a liability.

As long as the loan is repaid on time, there will be no problem. If you don’t repay the loan, you may still be jointly and severally liable, and you will have to help repay the loan. If the loan is repaid, it will not have much impact on you. Loans are definitely affected. The bank is worried that if the lender does not repay you, it must ensure that you have enough ability to help repay the loan, so even if it gives you a loan, the amount will be greatly reduced.

Qualification requirements for guarantors

First, legal persons, other organizations or citizens who have the ability to repay debts on their behalf can serve as guarantors. However, if a legal person, other organization or natural person who does not have full compensatory capacity, after entering into a guarantee contract as a guarantor, and then claims to be exempted from the guarantee liability because he or she has no compensatory capacity, the people will not support it.

Second, according to the relevant provisions of the General Principles of the Civil Law, individual industrial and commercial households and rural contract operators are a special form of citizens. Therefore, citizens who serve as guarantors can also be individual industrial and commercial households or rural contract operators.

Third, those who can serve as guarantors include: sole proprietorships and partnerships that have registered and obtained business licenses in accordance with the law; joint ventures that have registered and obtained business licenses in accordance with the law; Sino-foreign cooperative enterprises that have registered and obtained business licenses in accordance with the law; Social groups approved and registered by the civil affairs department; township, street, and village-run enterprises that have been approved and registered to obtain business licenses.

Fourth, if a branch of an enterprise legal person provides a guarantee without the written authorization of the legal person, the guarantee contract will be invalid. If the functional department of an enterprise legal person provides a guarantee, the guarantee contract shall be invalid.

Fifth, public institutions and social groups for the purpose of public welfare are not allowed to act as guarantors, and public institutions and social groups engaged in business activities are guarantors. If there are no other circumstances that would invalidate the guarantee contract, The guarantee contract signed by them shall be deemed to be valid.

Sixth, when accepting loans from foreign governments or international economic organizations, state agencies may serve as guarantors with the approval of the State Council. They are not allowed to serve as guarantors under other circumstances.

Does having a guarantee affect the loan to buy a house?

When applying for a loan, some people will encounter the bank requiring the borrower to find a guarantor to bear the debt of the house or to be personally responsible. This is because there are some problems with the borrower's income and credit record, so it is necessary to have a mortgage guarantor. This guarantor is usually a parent, spouse, brother, sister or friend. If you provide a loan guarantee to someone else, it will affect your own loan to buy a house. ? Let’s take a look with the editor below.

1. Does having a guarantee affect the purchase of a house with a loan?

Having a guarantee will not affect the purchase of a house with a loan if the borrower repays the loan on time, but if the borrower fails to repay the loan on time, Banks will not only repossess houses, auction houses, etc., but also require the mortgage guarantor to jointly and severally repay the loan. In this case, having a guarantee will affect the loan to buy a house, unless the borrower has obtained the approval of the lending institution and the guarantor qualifications are cancelled. .

2. What are the disadvantages of being a guarantor for others to buy a house?

When the other party fails to repay the loan on time, the guarantor must bear the repayment responsibility, and it will affect If you have bad credit in your credit record, if you want to apply for a loan to buy a house later, it will be difficult to get approved. For people who want to buy a house, it is best not to easily guarantee others, because the guarantee liability is permanent. Yes, there are some risks as long as the repayment is not completed.

In addition, banks also have certain requirements for guarantors. The guarantor must have a good economic foundation and a stable income. He must also have a household registration in this city. Once he agrees to guaranty for others, it means that he has a good financial foundation and a stable income. Others bear the risk of loan repayment. Of course, the guarantee methods are also divided into general guarantees and joint liability guarantees. The guarantor of the former can only bear the guarantee liability if the debt is still unable to be fulfilled after enforcement, while the guarantee liability of the latter is The risk is greater during the entire debt performance period.