Results 1 to 4 of 4

Thread: Mortgagor vs Borrower vs Guarantor

  1. #1
    Join Date
    Sep 2009
    Posts
    170

    Default Mortgagor vs Borrower vs Guarantor

    Hi peeps, can anyone tell me the difference between Mortgagor vs Borrower vs Guarantor?

  2. #2
    Join Date
    Jan 2007
    Posts
    106

    Default

    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%.
    Last edited by HalcyonVI; 8th May 2012 at 03:16 PM.

  3. #3
    Join Date
    Sep 2009
    Posts
    170

    Default

    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

  4. #4
    Join Date
    Jan 2007
    Posts
    106

    Default

    Quote Originally Posted by hoclara View Post
    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

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •