Housing
Being a guarantor can make your next loan harder to get — even if the borrower always pays
Acting as a guarantor (fiador) counts as a financial liability in your debt-to-income ratio, which banks use to calculate your eligibility for your own future loans. Even if the primary borrower is meeting all payments, the credit institution considers the total value of the loan as a potential debt for you.
Why it mattersIf you are a guarantor for someone else's mortgage or personal loan, your borrowing capacity for your own home purchase or credit may be significantly reduced because banks include that loan in your personal debt risk profile.
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