Co-signing or guaranteeing a loan

Myth or fact?

Someone who co-signs a loan has the same responsibilities as someone who guarantees a loan.
  • Myth
  • Fact

When lending money to someone with a shaky financial track record, a lender may ask for someone else to “co-sign” or “guarantee” the loan. Often it’s a friend or family member who’s approached. They may not realize what they’re getting into. Learn what you should consider before co-signing or guaranteeing a loan. 

What you should know

Work out problems

Common questions

Who can help

  • This information applies to British Columbia, Canada
  • Reviewed for legal accuracy in December 2019
  • Time to read: 14 minutes

Reviewed for legal accuracy by

Mario Garcia, CarbonCure Technologies and Ari Wormeli, YLaw Group

Mario Garcia
Ari Wormeli

Also on this topic

Still not sure what to do?

If you're looking for advice specific to your situation, there are options for free or low-cost help.

Options for legal help

We are grateful to work on the unceded traditional territories of the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish) and səlilwətaɬ (Tsleil-Waututh) Nations, whose Peoples continue to live on and care for these lands.