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Best Guarantor Loans in Canada 2023

A guarantor loan is one way to get a personal loan if you have bad credit and cannot access an unsecured loan on your own merits.

With a guarantor involved in your credit application, a lender has someone else to fall back on if you default on your debt repayment obligation.

What is a Guarantor?

A guarantor is someone who promises to repay a loan if a borrower is unable to do so.

Guarantors are often required when a person with a bad credit history or inadequate income applies for a loan.

The lender may ask them to find a creditworthy guarantor who co-signs the loan and pledges to repay it if the borrower defaults.

If both the borrower and guarantor cannot repay a loan, the lender may hire a debt collector to recover monies owed from both parties.

Depending on the situation and amounts owed, their assets can also be seized if a court judge decides that.

Loan Guarantor Requirements and Rules in Canada

Guarantor lenders generally expect your guarantor to have a good credit rating and be able to pay off your loan if needed.

They should:

  • Be independent of you
  • Be at least 19 years of age
  • Be a Canadian citizen or resident
  • Have a good credit history
  • Not have trouble paying their bills, i.e. have a decent income-to-debt ratio

Some guarantor lenders may also require that your guarantor have a home.

Best Guarantor Loans in Canada

Best Guarantor Loans in Canada

The only guarantor loan company in Canada is LendingMate. This company operates in Ontario and British Columbia.


If you need access to cash and do not qualify for a personal unsecured loan based on credit score, LendingMate can help.

It offers no credit check guarantor loans of up to $10,000 over a 36-60 month term.

The interest rate on this loan is 43% per annum, and there are no other fees.

Given that 95% of borrowers are approved, a LendingMate loan is almost guaranteed to be approved if you have a suitable guarantor in place.

Pros of Guarantor Loans in Canada

Finding a guarantor could mean the difference between getting approved for a loan and having your application denied by a lender.

Even with a bad credit history or no credit at all, you can be approved for a guarantor loan.

Applying for guarantor loans is easily completed online, and a company like LendingMate pays out the funds within 24 hours of accepting your guarantor.

Lastly, having a guarantor may help you qualify for a larger loan at a lower interest than regular bad credit or payday loans.

Downsides of Guarantor Loans in Canada

If the borrower cannot repay their debt, the guarantor becomes responsible for paying it.

This can severely damage their credit score and leave them struggling financially or even losing assets (such as a home).

Before guaranteeing a loan for anyone, make sure you trust them and consider the consequences should they default.

Also, if you decide you no longer want to be a guarantor for a loan, the loan has to be paid in full, plus accrued interest.

In essence, once you sign the documents to become a guarantor, you are liable until after it has been paid back.

Guarantor vs. Co-signer

A guarantor is not the same as a co-signer.

While a loan guarantor is only responsible for making payments when a borrower defaults, a co-signer co-owns the property, e.g. home, car, or other assets, and carries the same responsibility as the borrower for making payments from day one.

For example, if you are a “co-signer” on a mortgage, your name will appear on the title, and you co-own the property. You are also jointly responsible for making the monthly mortgage payments.

If you are a “guarantor” for a mortgage loan, you may be held liable for repaying it only after the lender has made reasonable efforts to get the borrower to settle their debt obligations.

Guarantor Loans Alternatives in Canada

You may be able to qualify for a loan without requiring a guarantor.

The two top platforms for bad credit loans are:

Loans Canada

Loans Canada

Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. This company holds an A+ accreditation with the Better Business Bureau and features multiple lenders on its website.

Interest rate: 1.99% to 46.96%

Loan term: 3-60 months.

Maximum loan amount: Up to $50,000.

Eligibility: Resident of Canada and employed for at least 3 months with proof of income.

loans canada logo

On Loans Canada’s website

  • Loan comparison platform that offers personal, debt consolidation, bad credit, guarantor, unemployed, no credit check, and no bank or employment verification loans.
  • Flexible terms and interest rates from 1.99% to 46.96% APR and 3-60 month term lengths.
  • Fill out one application and get access to hundreds of loan options without hurting your credit score.
  • Those with poor, average, or excellent credit scores can apply.
  • Compare multiple lenders for the best loan amounts, interest rates, and term lengths.
  • Complete your entire application online with no face-to-face interaction.
  • Apply in about 5 minutes with basic personal information and required documents.

Compare multiple lenders in one place

Fast and easy application process

Many different types of loans available

Interest rates can be as high as 46.96%

Some bad credit loans can incur early repayment penalties

Loan origination fee charged by some lenders

Loans Canada is one of the top loan comparison platforms in Canada that offers many types of personal loans from various lenders. You can easily compare and apply on their website, as well as view user reviews for each lender.

This loan comparison platform can be used for finding secured, unsecured, and guarantor personal loans.

It has partnerships with a vast network of lenders who offer loans up to $50,000 and terms ranging from 4 to 60 months.

Loan interest rates also vary from 2% to 46.96%, depending on your credit profile.



LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.

Interest rate: 6.99% to 46.9%.

Loan term: 3-120 months.

Maximum loan amount: Up to $50,000.

Eligibility: Resident of Canada and the age of the majority in your province or territory.

loanconnect logo

On LoanConnect’s website

  • No matter their credit score, Canadians can apply for a loan and are likely to be approved for a secured or unsecured loan from many different lenders.
  • Unsecured personal loans and installment loans are offered.
  • Types of loans include debt consolidation, home improvement, emergency, business, and medical expense loans.
  • Easily apply by filling out one form with the loan amount, purpose, personal, and employment details.

Get loans up to $50,000

No minimum credit score required

Searches through multiple lenders to find the best providers

Interest rates can be as high as 46.96% APR

LoanConnect is one of our top choices as they search through different lenders to find the best loan options for you based on the loan amount, purpose, employment information, and credit profile. The application process is straightforward, so you can get multiple loan offers in under a minute.

LoanConnect calls itself “Canada’s Premier Personal Loan Search Engine.” You can use the platform to get loans up to $50,000, and the online application takes 5 minutes or less.

Loan rates vary from 5.75% to 46.95%, and funds can be borrowed for up to 60 minutes.

For car loans, the APR ranges from 1.90% to 4.95%.

Guarantor Loans FAQs

Can I get a guarantor loan with bad credit?

You may qualify for a guarantor loan with poor or bad credit. That said, the lender will only approve your loan if your guarantor has a good credit history.

What if I can’t find a guarantor?

If you can’t find a loan guarantor, you could opt for a bad credit loan, borrow from friends, carry a balance on your credit card, and get help from a credit counsellor.

Where can I get loans without a credit check or a guarantor?

Visit your bank or apply online using platforms like Loans Canada and LoanConnect.

Does my guarantor need to have a home?

It may help your application if your guarantor has a home or property, but this may not be mandatory.

Does my guarantor have to be working?

No, they don’t need to have a job, but they must be able to show they have sufficient funds to repay the loan if you are unable.

Who can be a guarantor for a loan?

Someone who is the age of the majority in their province, who has sufficient income, and good credit history.

Why do I need a guarantor?

You may be required to provide a guarantor when applying for a loan because you have bad credit (or no credit history), a low income, or have trouble paying your bills.

What if my guarantor cannot pay?

The lender can take further actions, including using the services of a debt collector and can take both the guarantor and borrower to court.


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Borrow up to $50,000 for 3 months to 60 months.

Loans for any reason with rates from 2.99% to 46.96%.

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Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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