Family Guarantor Loans
Helping you get into your first home sooner.
Saving a 20% deposit takes most people years, and for a lot of first home buyers, that is the only thing standing between them and buying their first home. A family guarantor loan can shortcut that by using equity in a family member's home as extra security for your loan, instead of you needing to save the full deposit in cash.
It's simpler than it sounds, and it's worth clearing up a few common misunderstandings.
- The guarantor doesn't own any part of your property.
- No ownership changes hands.
- No cash moves between you and the guarantor/s
- Nothing is transferred or paid out.
- You're the one making the loan repayments, not the guarantor.
What actually happens is this: the bank agrees to lend you the money because there's enough security behind the loan, partly your property, and partly a portion of your guarantor's equity, standing in for the deposit you haven't saved yet.
It's a real commitment on their part, so we make sure both of you understand exactly what it involves before going ahead, and we build in a plan for releasing them from the guarantee once you've paid down enough of the loan or your property's grown in value.
How We Help
Guarantor Structuring
LMI Removal
Guarantee Release Planning
Loan Repayment Calculator
See what your monthly repayments could look like based on your loan amount, interest rate and loan term.
Borrowing Capacity Calculator
Find out how much you may be able to borrow based on your income, expenses and current financial situation.
Frequently Asked
Read through our FAQ’s for added information. Have other questions? Contact our team today.
Yes, once you've paid down enough of the loan or your property has grown in value, we help you apply to release the guarantee.
The guarantor could be called upon to cover the shortfall, which is exactly why we make sure both of you understand the commitment fully before proceeding.
Yes, guarantees are usually limited to a set portion of the loan, not the full amount, and we structure this so your guarantor's exposure is limited to what's genuinely necessary.
Typically an immediate family member, most often a parent, with sufficient equity in their own property. Requirements vary by lender.
In most cases yes, once you have paid down enough of the loan or your property has grown in value. We build a release plan in from the start rather than leaving it open-ended.
No. You are solely responsible for the repayments. The guarantor's property is used as additional security, not as a source of repayment.
