What is a guarantor and how does a guarantor loan work?
A guarantor is someone who provides a guarantee on your mortgage by using their property as security. In most cases, this will be your parents using their home.
Some lenders will allow your guarantors to be immediate family members such as siblings, grandparents, spouses, de facto partners or adult children.
Once you have paid off part of your loan or your property has increased in value, you can apply to remove the guarantor.
Don’t pay Lenders Mortgage Insurance!
Lenders Mortgage Insurance (LMI) is a one-off fee that you have to pay when borrowing more than 80% of the property value.
Depending on the property price and how much you’re borrowing, you could easily be paying more than $10,000.
However, with a guarantor, lenders see you less as a risk and will waive the cost of LMI!
Consolidate minor debts, including credit cards and personal loans.
Only a few, selected lenders allow you to roll all of your debts, including your new mortgage, into one low repayment each month.
This makes it possible to borrow up to 110% of the property value with your parents as guarantors.
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My wife and I found a house we really liked but didn’t have a sufficient deposit, but we had a guarantor. We called Home Loan Experts and they were incredibly helpful and told me they could get it done. I called them 1 month ago and right now we are in our own home. I read reviews on this site after I called and didn’t think it was real, let me assure you they’re the real deal.
The team assessed our situation first and suggested multiple options to meet your needs. We had quite a bit complex situation with my uncle as a guarantor and changing employment situation, however, nothing is a challenge for them. Great communication, great service and a great team.
Trust me even if you believe it’s not possible to own your own home, please give Home Loan Experts a call and they will look at every possible way of making your home ownership dreams come true. We are grateful beyond words and I give the highest possible recommendation to the team. Absolutely first-class service, 10 out of 10.
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