Guarantor Loans

There are some myths around guarantors- will my parents have to sacrifice their home for me? No. Will they be out of pocket? No. Can I secure my home loan and release my parents in the near future? Most likely- yes! Having a guarantor basically means that they use a small portion of their equity to secure your home loan, allowing you to purchase and save on Lenders Mortgage Insurance (LMI), meaning you can use your savings as deposit.  

There are strict requirements protecting guarantors when providing a security guarantee. There are a lot of questions that both you and your parent/s will have around this option however, the team at Mortgage Choice Gippsland have the patience and knowledge to help find the best possible solution to fit everyone’s needs. With the price of property these days, we are finding more and more children need to ask their mum/dad to help them buy a house. Giving cash is not always an option - or the best option, however some parent/s can still help by providing a limited security guarantee, whereby the children or family member can utilise the benefits of the parent/s equity, that acts like a bigger deposit saving the child/ren on LMI and help them get into the housing market sooner.

                                  

We will go through to the process with all parties - answering all your questions and outlining participating lender requirements providing a clear understanding so that both you and your parent/s will feel safe and knowledgeable to undertake the process with confidence and purchasing your home can become a reality.

Call Mike from Mortgage Choice Gippsland on 0427 238 222 to find out more or if this is an option available to you.