Even if you’ve got almost zilch in savings or you’ve had bad luck with finance in the past, owning your own home is still completely possible (with a little help from your fam).
A common way for first home buyers to get into their first home is with the assistance of a parent or family member. And no, you won’t be asking your ‘rents for money, instead you’ll be asking them to become your loan guarantor.
How Guarantor Loans work
A guarantor loan uses the equity in the guarantor’s (i.e.your parents) property as security for your first home. This is a great option for first home buyers that are finding it difficult to save for a deposit.
We work closely with our in-house finance team who can assist with the application of a guarantor home loan and help first home buyers get into a home of their very own.
The perks of a Guarantor Loan
For some first home buyers, a guarantor may be the perfect way to get into your own home sooner.
With a guarantor you can:
- Borrow up to 100% of the property’s purchase price (plus fees)
- Spend less time saving and more time enjoying your new home, because that’s all that matters, right?
- Avoid paying Lenders Mortgage Insurance (LMI), literally saving you thousands!
- Improve your chances of being approved for a home loan with the added security
Who can be your Guarantor?
Usually, a guarantor is limited to your immediate family members (ie your parents and spouses), however some lenders may also allow siblings, parents-in-law, step-parents, grandparents or even aunts/uncles to act as a guarantor to help you get into your new home.
*Eligibility requirements may apply and can differ depending on the lender. Speak to our in-house finance team for more information on the full eligibility criteria.