Guarantor advice
so trustworthy you’ll
want to lend it some milk
1 meeting
30 minutes
Our office or we come to you
To guarantor or not to guarantor. That is the question…
Let us guess, your son’s buying his first home and needs someone to back him up.
Or, maybe it’s your partner who’s saved for years, but is exploring the guarantor route on their new business purchase.
Or is it a friend, down on their luck, and you (the loveable person you are) raised your hand to help out?
No matter your situation, it’s critical you understand the risk involved with being a guarantor. All before you sign on the dotted line for a Solicitor’s Guarantor Advice Certificate.
It’d be our pleasure to run you through the lot.
What is a guarantor?
Being a guarantor means you engage in a loan agreement with another party to help them secure additional funds to buy a home.
Being a guarantor does carry risks for you and your assets, so it’s important you know what they are. After all, you have no control over whether the borrower is compliant with their loan repayments.
Many financial institutes now make it mandatory as part of any loan that has a guarantee that an independent Solicitor’s Guarantor Advice Certificate is obtained.
That’s where we come in.
Get guarantor ready with
guarantor advice
Understand what you’re signing
Know what’s at risk
Make it legally official
The simple process
1.
Let us know you’ve been asked to be a guarantor via our contact form
2.
Receive a call that day, a quote within 24-48 hours and an appointment scheduler
3.
Arrive at your appointment in one of our Queensland offices or we come to you
4.
Receive information and if you choose to be a guarantor, sign the paperwork right then and there
How much does it cost? Most appointments fall in the range of $880 – $1,500*. The exact fee depends on the complexity of your documents – we’ll confirm it once we’ve had a look.
*We need to confirm the fee once we see the documents.
Why You Need Independent Guarantor Advice
Why do banks require a Solicitor’s Guarantor Advice Certificate?
When someone asks you to be a guarantor on their home loan, the bank or lender will almost always require you to get independent legal advice from a solicitor before they approve the loan. This is not just a box-ticking exercise – it is a legal safeguard designed to protect you.
In Queensland, financial institutions require a Solicitor’s Guarantor Advice Certificate (sometimes called a third-party security certificate) to confirm that an independent solicitor has explained the full risks and obligations of the guarantee to you. Without this certificate, the lender will not proceed with the loan.
The key word here is independent. The solicitor providing your guarantor advice cannot be the same solicitor acting for the borrower. This ensures you are getting advice that is focused entirely on your interests – not anyone else’s.
What happens during a guarantor advice appointment?
At Empire Legal, your guarantor advice appointment is a straightforward, no-pressure meeting that takes around 30 minutes. Here is what you can expect:
Your solicitor will explain the loan documents and guarantee in plain English – no legal jargon. They will walk you through exactly what you are agreeing to, including the total amount of the guarantee, whether it is a limited guarantee (capped at a specific dollar amount) or an unlimited guarantee (where you could be liable for the entire loan amount plus costs), what assets of yours could be at risk if the borrower defaults, your ongoing obligations for the life of the loan, and the circumstances under which the lender could take action against you.
Your solicitor will also make sure you understand that being a guarantor is not just a favour – it is a serious financial commitment. If the borrower stops making repayments, the lender can come after your assets, including your family home.
What are the risks of being a guarantor?
Being a guarantor carries real financial risk. If the borrower defaults on their loan repayments, you as the guarantor could be required to cover the outstanding debt. In some cases, this can mean the lender forces the sale of your property to recover the money owed.
Other risks include damage to your own credit rating if the borrower misses payments, reduced borrowing capacity for your own future loans, and the potential strain on personal relationships if things go wrong.
That is exactly why independent guarantor advice exists – so you walk into the arrangement with your eyes wide open, fully understanding what could happen.
Can a solicitor refuse to provide a Guarantor Advice Certificate?
Yes. If during the appointment your solicitor believes you do not fully understand the risks, or if there are signs of undue pressure or duress, they can – and should – refuse to sign the certificate. This is another layer of protection built into the process. Your solicitor is there to look out for you, not to rubber-stamp paperwork.
At Empire Legal, our team of experienced conveyancers and lawyers take the time to make sure every guarantor genuinely understands what they are signing. If something does not feel right, we will tell you.
Frequently Asked Questions About Guarantor Advice
How much does guarantor advice cost?
Every guarantee is different, so the cost of your guarantor advice appointment will depend on the complexity of the loan documents and the type of guarantee involved. The vast majority fall into the range of $880 – $1,500*.
*We need to confirm the fee once we see the documents.
Get in touch with our team for a personalised quote – we will have one back to you within 24-48 hours. You can reach us on 07 3088 7675 or via our contact form.
How long does a guarantor advice appointment take?
Most guarantor advice appointments take around 30 minutes. During this time, your solicitor will explain the loan documents, the nature of the guarantee, the risks involved, and answer any questions you have. We make sure you leave feeling confident that you understand exactly what you are signing up for.
What documents do I need to bring to my guarantor advice appointment?
Your bank or broker will usually provide you with a set of loan documents and guarantee documents to bring along. If you have not received these yet, do not worry – just let us know when you book your appointment and we can liaise with the lender or broker directly. Bring a valid form of photo ID (such as a driver’s licence or passport) as well.
Can I change my mind after signing as a guarantor?
Once you have signed the guarantee and the loan has settled, it is very difficult to withdraw as a guarantor. In most cases, the guarantee remains in place until the borrower refinances, pays down the loan to a level where the guarantee is no longer needed, or the lender agrees to release you. That is why it is so important to get proper independent legal advice before you sign – not after.
What is the difference between a limited and unlimited guarantee?
A limited guarantee caps your liability at a specific dollar amount – for example, you might guarantee up to $100,000 of a $500,000 loan. An unlimited guarantee means you could be on the hook for the entire loan balance, plus any interest, fees, and legal costs the lender incurs. Your solicitor will explain which type of guarantee applies to your situation during your appointment.
Do I need a solicitor for guarantor advice in Queensland?
Yes. In Queensland, lenders require that guarantors receive independent legal advice from a qualified solicitor before the guarantee is finalised. The solicitor must then provide a signed certificate confirming that the advice was given and that you understood the risks. This is a legal requirement – not something that can be skipped. Empire Legal provides guarantor advice across Brisbane, Bayside, Gold Coast, and throughout Queensland.
What is guarantee witnessing?
Guarantee witnessing refers to the legal process where a qualified solicitor witnesses and certifies a guarantor signing their loan guarantee documents. In Queensland, lenders require that a guarantor receive independent legal advice and a solicitor signs a certificate confirming the guarantor understood what they were signing. Empire Legal handles guarantee witnessing as part of our guarantor advice appointments – usually completed in around 30 minutes.
