Guarantor

Co-signer

A person, often a parent, who promises to pay the rent if the tenant does not. Human-rights law limits when landlords may require one.

A guarantor is a person who promises a landlord that they will pay the rent if the tenant stops paying. A guarantor is often a parent, relative or close friend. Guarantors are sometimes called co-signers because they sign the lease too, though some provinces treat the two roles differently.

Manitoba's Residential Tenancy Branch explains one version of the difference. A co-signer signs the tenancy agreement and agrees to be responsible for the tenant's obligations. A guarantor signs a separate guarantee that the tenant will meet specific obligations. In Manitoba, a guarantee ends when a fixed-term tenancy ends, unless it says otherwise. It should state a maximum amount or say that liability is unlimited. A landlord claiming against a guarantor must show what they did to keep their loss to a minimum.

In Ontario, the Human Rights Code allows landlords to use guarantees when selecting tenants. Steps to Justice says a landlord may ask for a guarantor if you have bad references or bad credit. A history of not paying rent is another reason. The Ontario Human Rights Commission adds that a guarantor requirement must be the same for all tenants. It cannot apply only to people identified by a protected ground. A landlord cannot ask for one because you are a single parent, new to Canada, receiving social assistance or have a disability. Age is also protected, as long as you are at least 18, or at least 16 and independent from your parents.

Being a guarantor is a real legal commitment. Before signing, a guarantor should know exactly what is covered, how much, and for how long. That includes whether the promise continues if the lease renews.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.