Should I be a guarantor for someone's loan?

General information from Lawmateanz

Being a guarantor means you're promising to repay a loan if the borrower doesn't. In New Zealand, if they default, the lender can come after you for the full amount, including interest and costs, and may be able to take security over your assets.

Before signing, read the guarantee, understand the loan amount, and consider whether you could afford to pay it.

Many lenders require you to get independent legal advice before signing, which is a good idea anyway.

Ending a guarantee later can be difficult, so ask whether it can be limited in amount or time.

Written by Lawmateanz, not by a lawyer. General information only, not legal advice about your situation. For advice about your own matter, talk to a lawyer.

Lawyers listed on Lawmateanz can answer this question. If you asked it, we'll email you as soon as it's answered.

Are you a lawyer? Answer this question · List free on Lawmateanz

General information only. Answers are written by independent lawyers based only on what's in the question. They aren't legal advice about your situation and don't create a lawyer–client relationship. For advice about your own matter, talk to a lawyer directly.