Guarantor Loan Calculator

This calculator shows the exposure you would carry if you agree to be a guarantor for someone else's loan or mortgage in New Zealand. Going guarantor means you promise to repay the debt if the borrower cannot, and lenders can pursue you for the guaranteed amount, sometimes the whole loan plus interest and costs, and in some cases against your own assets including your home. You enter the loan amount you are guaranteeing, the interest rate, the loan term in years, and your guarantee limit, entered as zero if unlimited. The calculator returns the amount you could be liable for, the monthly repayment you might have to cover if the borrower defaults, and whether your guarantee is limited or unlimited. A limited guarantee caps your exposure at the figure you set; an unlimited guarantee can leave you responsible for the entire loan plus interest and costs, a bigger commitment than most guarantors expect. Use the tool before you sign anything, to see the real size of the obligation rather than relying on assurances that repayments will always be met. Adjust the limit to compare a capped commitment against an open-ended one, and talk through the results with an independent lawyer. This is a simplified illustration of your exposure, not a substitute for legal advice, and your actual liability depends on the wording of the guarantee document you sign.

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A limited guarantee caps your exposure at the limit; an unlimited guarantee can cover the whole loan plus interest and costs. This is a simplified illustration; always get independent legal advice before going guarantor. Estimate only.