Guarantor Loan Calculator NZ
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.
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.
How it works
The calculator shows the loan you are guaranteeing and the monthly repayment a lender could ask you to cover if the borrower defaults. If you set a guarantee limit, your exposure is capped at that amount; with no limit (unlimited), you could be liable for the whole loan plus interest and the lender's costs. The point is to see the real size of the commitment before you sign.
Worked example
Guaranteeing a $150,000 loan at 6.5% over 25 years, the repayment you might have to cover is about $1,013 a month. With no limit, your exposure is the full $150,000 plus costs; a $50,000 limited guarantee would cap it at $50,000.
Related calculators
- Mortgage Deposit Gift Calculator: gifting a deposit.
- Mortgage Repayment Calculator: repayments.
- Borrowing Capacity Calculator: borrowing power.
- Home Equity Calculator: your equity.
- Going Guarantor on a Loan Guide: background on this topic.
- How Guarantor Home Loans Work - New Zealand: background on this topic.