Guarantor Home Loans
Enter the property market sooner!
Guarantor Home Loans
Enter the property market sooner!
Guarantor Home Loans
Enter the property market sooner!
What Is a Guarantor Home Loan?
What Is a Guarantor Home Loan?
What Is a Guarantor Home Loan?
A guarantor home loan is where a guarantor, usually a family member, puts in a portion of their equity in their own property as security for your home loan. This allows you to borrow up to 110% of the property value without having to pay for the deposit or the lender's mortgage insurance (LMI).
Home Loan Guarantee Limit Calculator
Home Loan Guarantee Limit Calculator
Home Loan Guarantee Limit Calculator
Most mortgage brokers ask the lenders to limit the guarantee amount the guarantor is liable for so that they are not held liable for the entire loan amount. Use the calculator below to check out the size of your guarantor’s limited guarantee
The results provided by this calculator are for indicative purposes only and are based on the information you have provided. They do not constitute financial advice, a loan offer, or a guarantee of approval. Loan eligibility is subject to lender assessment, credit checks, and other conditions. We recommend consulting with a licensed financial advisor or mortgage broker before making any financial decisions.
The results provided by this calculator are for indicative purposes only and are based on the information you have provided. They do not constitute financial advice, a loan offer, or a guarantee of approval. Loan eligibility is subject to lender assessment, credit checks, and other conditions. We recommend consulting with a licensed financial advisor or mortgage broker before making any financial decisions.
A smaller initial deposit amount is needed with reduced deposit requirements (5% instead of 20%) or access to the government grant
Pros
Cons
Pros and Cons of Guarantor Home Loans
More flexible credit score criteria compared to traditional mortgages
Competitive interest rates, often below standard mortgage rates
Maximum loan amounts may be more restricted than conventional mortgages
Ongoing lender's mortgage insurance (LMI) costs if the down payment is below 20%, although some participating lenders may consider waving it
Income restrictions apply to many state-level assistance programs
Limited initial equity buildup due to minimal down payment
May face stricter property condition requirements and mandatory inspections
A smaller initial deposit amount is needed with reduced deposit requirements (5% instead of 20%) or access to the government grant
Pros
Cons
Pros and Cons of Guarantor Home Loans
More flexible credit score criteria compared to traditional mortgages
Competitive interest rates, often below standard mortgage rates
Maximum loan amounts may be more restricted than conventional mortgages
Ongoing lender's mortgage insurance (LMI) costs if the down payment is below 20%, although some participating lenders may consider waving it
Income restrictions apply to many state-level assistance programs
Limited initial equity buildup due to minimal down payment
May face stricter property condition requirements and mandatory inspections
A smaller initial deposit amount is needed with reduced deposit requirements (5% instead of 20%) or access to the government grant
Pros
Cons
Pros and Cons of Guarantor Home Loans
More flexible credit score criteria compared to traditional mortgages
Competitive interest rates, often below standard mortgage rates
Maximum loan amounts may be more restricted than conventional mortgages
Ongoing lender's mortgage insurance (LMI) costs if the down payment is below 20%, although some participating lenders may consider waving it
Income restrictions apply to many state-level assistance programs
Limited initial equity buildup due to minimal down payment
May face stricter property condition requirements and mandatory inspections
A smaller initial deposit amount is needed with reduced deposit requirements (5% instead of 20%) or access to the government grant
Pros
Cons
Pros and Cons of Guarantor Home Loans
More flexible credit score criteria compared to traditional mortgages
Competitive interest rates, often below standard mortgage rates
Maximum loan amounts may be more restricted than conventional mortgages
Ongoing lender's mortgage insurance (LMI) costs if the down payment is below 20%, although some participating lenders may consider waving it
Income restrictions apply to many state-level assistance programs
Limited initial equity buildup due to minimal down payment
May face stricter property condition requirements and mandatory inspections
Requirements to Be A Guarantor
Most lenders require the guarantor to be an immediate family member of the borrower, such as a parent, sibling, or spouse.
The guarantor must have a stable financial situation and sufficient equity in their property to secure the loan.
The guarantor’s credit history must be excellent.
The guarantor must agree to offer a portion of the equity in their own property as additional collateral for the borrower's loan by free will.
Our guarantor must complete the lender's guarantor form for all of these requirements to be evaluated.
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Yes, if you have built at least 20% of the home equity and have a stable income, you can release or withdraw your guarantor with your current lender or lease them by refinancing your loan to another lender. It will be subject to the lender's assessment of the applicant including their income, expenses, and increased value of their property.
Can I withdraw my guarantor?
Yes, if you have built at least 20% of the home equity and have a stable income, you can release or withdraw your guarantor with your current lender or lease them by refinancing your loan to another lender. It will be subject to the lender's assessment of the applicant including their income, expenses, and increased value of their property.
Can I withdraw my guarantor?
Yes, if you have built at least 20% of the home equity and have a stable income, you can release or withdraw your guarantor with your current lender or lease them by refinancing your loan to another lender. It will be subject to the lender's assessment of the applicant including their income, expenses, and increased value of their property.
Can I withdraw my guarantor?
Yes, if you have built at least 20% of the home equity and have a stable income, you can release or withdraw your guarantor with your current lender or lease them by refinancing your loan to another lender. It will be subject to the lender's assessment of the applicant including their income, expenses, and increased value of their property.
Can I withdraw my guarantor?
Confused about how to get started with your guarantor home loan application and which lenders offer the best interest rates? Fill out Select Loan & Mortgage’s consultation form today to get all your related queries answered!
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
Ready to Get Your Dream Home With Us.
Select Loan & Mortgage is a one-stop solution for home loan consulting services in Australia.
ABN: 86 680 285 143
ACN: 680 285 143
Address: Level 10, 90 King William Street Adelaide SA 5000
Select Loan & Mortgage
Home Loan Calculators
Select Loan and Mortgage Pty Ltd | Credit Representative Number 563198 is authorized under Australian Credit License 389328 | 86 680 285 143 |
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.