Please advise.

My brother & his wife are trying to purchase a new condo worth of 600k. However, their housing loan has not been approved yet. The banker has asked if he could get a guarantor to secure the loan because there is shortage of Rm600.

My question is if I agree to become guarantor, will there be any issues if I want to purchase house later on? I currently have a joint housing loan with my dad, the remaining loan balance is about Rm 60k. My dad has rented the unit so I'm not paying for that house. And also, if i become guarantor will my name listed in CCRIS report? Please guide me, thanks a lot.

P/S: sorry for my english

Guarantor won't affect your credit status if the borrower pays their debt on date.
It only becomes a problem when they delay or can't afford to pay the monthly repayment.
In that case, you'll have full responsibility to pay for the house they buy.

BTW, will guarantor status appear in our CCRIS or CTOS?

If it's just short of RM600, ask your brother or your wife to borrow less RM600 la. Why want to tie you for 30+ years just because of the RM600 difference **cannot brain**

Guarantor is as good as being a borrower because you are in the contract with the Bank. A Guarantor's position is no different in the sense that if the borrower fails to pay back the monies borrowed, the Guarantor guarantees to pay on behalf of the borrowers. If at all you want to know the difference then this is it, the guarantor bears liabilities but no benefits. Money goes to the account of the borrower but nothing goes to the guarantor.

If the loan becomes an un-performing loan then you'll be deemed as a defaulter as well and yes, you're credit report will be affected.

Yes. In fact, a Guarantor can be sued bankrupt for monies he/she did not borrow. The recent amendment to the Bankruptcy Act however now provides for a method for guarantors who are made bankrupt in the capacity of a guarantor to discharge themselves.

being a guarantor also will eat into ur quota. it will be as if u borrow a loan

eg a person can have up to maximum two 90% loans.

if u become guarantor 1 time, is consider u take one loan already.

They have just loosen the entire bankruptcy act recently. Not just the guarantor.
Btw, I think the short fall is 600k not 600

Yeah, it does but thinking how TS talked about Guarantor so I think it would be fitting to just mention that briefly.

it depends on the banks. Some banks will claim that they are asking for a guarantor but it will appear in the guarantors CCRIS report as a joint borrower. You would want to avoid this.

The traditional way is that the guarantor will not have his/her ccris affected in any way, unless the borrower defaulted on the payments


it depends on the bank actually, some will let you know upfront that being a guarantor would affect your CCRIS. ideally you would like to avoid this.

In any case, banks prefer not to deal with guarantors anymore except in some cases. They prefer that the borrowers to be solely responsible for their borrowings.

Short 600? Typo is it?

This is bad. Anyhow, we shall avoid to be a guarantor.