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View Full Version : Mortgagor vs Borrower vs Guarantor



hoclara
2nd May 2012, 04:43 PM
Hi peeps, can anyone tell me the difference between Mortgagor vs Borrower vs Guarantor?

HalcyonVI
8th May 2012, 03:12 PM
A mortgagor is an owner of a property who agrees to pledge the property to get a home loan.
A borrower is the person who is primarily responsible for servicing the home loan.
A guarantor is the person who is secondarily responsible for servicing the home loan.

All owners of a property must agree to pledge the property if they want a home loan. i.e. all owners must be mortgagors
Only for HDB properties, all mortgagors have to be borrowers.
Only mortgagors can use CPF money to pay towards the property or home loan.
A guarantor and borrower is very similar but there are some differences. e.g. if you are a guarantor for a home loan and not a borrower for any home loans, you may be able to still qualify for a higher financing of 80% for your home loan, whereas if you are already an existing borrower, the maximum financing is 60%.

hoclara
14th May 2012, 10:33 PM
Thanks for the clear and concise info! I think I get this but just to double double confirm, am I right to say that for private properties, mortgagors do not have to be borrowers? And even if one is not a borrower, as long as one is a mortgagor, CPF can be used? Thanks in advance :)

HalcyonVI
17th May 2012, 10:13 PM
Thanks for the clear and concise info! I think I get this but just to double double confirm, am I right to say that for private properties, mortgagors do not have to be borrowers? And even if one is not a borrower, as long as one is a mortgagor, CPF can be used? Thanks in advance :)

Correct :)