Get into your first home faster with a family guarantor. It can be looked at as a no deposit home loan because you can have a family member to go as your guarantor without them actually providing cash for a deposit. They can use the equity in their family home as a guarantee.
The family guarantee allows parents and immediate family members to use their own home’s equity to provide additional security for a portion of the loan amount. It offers a solution which is particularly useful for first time home buyers. Not only that it reduces the loan to value ratio but also save you a significant amount of money by avoiding the need to pay Lenders Mortgage Insurance (LMI).
You get into your first home faster with a family guarantor as it allows you, as the guarantee, to be limited to a specific amount that helps provide certainty, allowing the property to be released earlier than guarantees which cover 100% of the loan amount. When parents would go guarantor on the loan before, it would mean that they were on the title and the mortgages as well, but that has changed now and is no longer the case.
With a family guarantor, there’s more leniency for loan approval due to the additional security. A family guarantor makes it much more likely for you get approved with a home loan for they will have an extra level of protection if you are unable to make repayments and default on your loan with more than one security on it. You can also get into your first home sooner, avoid the cost of mortgage insurance, and even have the power to borrow 100% of the purchase price of the property at the same time.
Aside from the fact that you may be able to reduce or avoid paying Lenders Mortgage Insurance (LMI) by increasing your security through a guarantee from your family, a family guarantor can also help you maximize the amount you can borrow so you can purchase the property you want. The guarantee’s limit to a specific amount can be requested by the guarantor.
There can also be potential discounts for first time home buyers and it can be used for bridging finance, construction, and debt consolidation. A family guarantor is an exclusive home buying solution that can help home buyers secure a home loan or repay an existing home loan. It can be extremely useful not only for home buyers who need to borrow more funds than they may personally be eligible for but also for first time home buyers to be able to get into their first home sooner. It’s possible for the home buyers to purchase a property they really want without having to settle for a cheaper alternative. A family member can assist the home buyer without taking on another financial commitment in their name if they only provide security support, depending on how the family guarantee is structured.
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