If you’ve been asked to be a guarantor and don’t feel comfortable about it, there are other options to help. For example, you could provide the borrower with deposit funds so they can meet the lender’s LVR. This will avoid you taking legal responsibility for the loan.
You could also become a co-borrower on the loan. This means you will help with the repayments and develop joint equity in it with the borrower. Again, this is a less risky option than becoming a guarantor.