Saving for a 20% deposit can be hard today, on a property price of $750,000 a 20% deposit is $150,000 which could take years to accumulate.
A guarantor home loan is a unique financing arrangement in which a family member of the homebuyer pledges their own property as collateral for the loan. This type of loan serves as the sole option for borrowing between 100% and 110% of a property's purchase price. Essentially, 80% of the loan amount is secured by the property you intend to purchase, while the remaining 20% is secured against your parent's property.
Book a free consultation here.
How Much Can You Borrow?
The amount you can borrow through a guarantor loan depends on your specific borrower category:
First-home buyers: Up to 105% of the property's value.
Construction projects: Up to 105% of the combined value of the land and construction costs.
Refinancing: Up to 100% of the property's value.
Home purchase: Up to 110% of the property's value.
Investors: Up to 105% of the value of your investment property.
What Are the Advantages of a Guarantor Loan?
Opting for a guarantor loan offers several advantages:
No deposit is required, enabling you to become a homeowner sooner.
You can avoid the expense of paying a Lender's Mortgage Insurance (LMI) premium.
Some lenders offer discounted interest rates for guarantor loans.
It's possible to limit the size of the guarantee to minimize your family member's exposure to risk.
Let our home loan experts secure the most suitable deal for you
The images or content displayed on the koalify.au website, which feature financial product details including interest rates, are solely for demonstration purposes.The Koalify website does not endorse any specific credit products, and nothing contained within the site should be interpreted as offering credit advice. Should you opt to engage with a Koalify home loan expert, credit assistance might then be provided, at which point you will receive the pertinent information and documentation relevant to your interaction. Access and use of this site and any of its services are governed by our Terms & Conditions and Privacy Policy.
© 2024 Koalify. KOALIFY GROUP PTY LTD trading as Koalify. ABN 43673755130. Credit Representative Number 557851 is authorised under Australian Credit Licence Number 389328. All Rights Reserved.