Has NAB stopped doing family guarantee home loans?

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Stokesy
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Joined: Thu Sep 13, 2018 2:06 pm

Has NAB stopped doing family guarantee home loans?

Postby Stokesy » Thu Sep 13, 2018 2:24 pm

I’m planning to buy a property but, due to low savings, I decided that a guarantor loan was the solution. Thankfully, my parents were in a position to help out because they had enough equity in their home. All my loan accounts and savings accounts are with National Australia Bank (NAB), so I approached them first. Sadly, they declined my home loan application mentioning that their guarantee policy had changed and they could no longer accept a guarantor’s place of residence as a security guarantee. It can only be an investment property.

Will other lenders accept my parents' home as security for a guarantor mortgage?

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Otto Dargan
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Re: Has NAB stopped doing family guarantee home loans?

Postby Otto Dargan » Thu Sep 13, 2018 3:25 pm

Hi Stokesy,

Yes, you're right about NAB.

The lending policy around their family guarantee loan has changed significantly:
  • The guarantor's property must be an investment property that they own and not their family home.
  • Secondly, NAB is no longer accepting second home buyers, which means investors. If you're a first home buyer, you can still qualify!
  • Finally, the NAB family guarantee only allows you to borrow up to 95% Loan To Value Ratio (LVR) which means you still need a deposit!
Unfortunately, these changes effectively defeat the purpose of getting help from mum and dad.

Luckily, there are still lenders offering 105% guarantor loans even on the guarantor’s owner-occupied property to buyers, allowing you to borrow 100% of the property value plus the costs of completing the purchase.

It's a real no deposit solution!

Please speak with one of our experienced mortgage brokers on 1300 889 743 or by completing our free assessment form and we can help you qualify for a 105% guarantor home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Stokesy
Posts: 3
Joined: Thu Sep 13, 2018 2:06 pm

Re: Has NAB stopped doing family guarantee home loans?

Postby Stokesy » Thu Sep 13, 2018 5:01 pm

That’s great to hear. Also, I was planning to borrow more so I could pay off my credit card. Is it possible with another lender?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Has NAB stopped doing family guarantee home loans?

Postby Otto Dargan » Thu Sep 13, 2018 6:16 pm

Hi Stokesy,

Yes, you can use a debt consolidation guarantee and consolidate some minor debts, such as your credit card debt, into your mortgage.

By using the guarantor option, the bank is willing to lend up to 105% of the property value to cover stamp duty, conveyancing fees, home loan set up costs and other legal costs.

Debt consolidation allows you to consolidate up to 5% of the property value in debt which effectively means you can borrow up to 110%.

You can take years off paying back your credit card debt by paying back your interest at much lower home loan interest rates.

As a general rule, a borrower must have made perfect repayments on their debts for the last three months, in some cases up to six months.

Speak with one of our brokers that specialise in guarantor home loans by calling us on 1300 889 743 or by completing our free assessment form today!

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Stokesy
Posts: 3
Joined: Thu Sep 13, 2018 2:06 pm

Re: Has NAB stopped doing family guarantee home loans?

Postby Stokesy » Thu Sep 13, 2018 7:59 pm

Thanks for the info. I really appreciate the time and effort you put into answering my queries. I’ll call you guys in the coming week to discuss my situation.


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