Guarantor

Hi,

If I become a guarantor for my mother’s purchase will I be able to limit the guarantee to a certain amount. e.g. a purchase price of $1,000,000. Say she has deposit/cash of $500,000, my mother to borrow $500,000 and I be guarantor for $250,000, i.e. if I was not guarantor she could only borrow $250,000 and purchase a less desirable property for $750,000.

I intend to buy an investment property after her purchase, would my borrowing capacity be reduced by $250,000 (the guarantee amount) or would my borrowing capacity be reduced by $500,000 (the loan amount). Or would my borrowing capacity be reduced by $500,000 only if I was a borrower or had my name on title. I basically want to assist my mother secure a better property with the least possible impact on my borrowing capacity.

Thanks.