Re: Do I need to prove my savings to get a guarantor loan?
Posted: Fri Jan 25, 2019 5:38 pm
Hello Raul. Welcome to the forums.
Even though guarantor home loans allow you to borrow 100% of the purchase price, many lenders still require you to have 5% of the purchase price in genuine savings.
This is simply money you have saved yourself with regular deposits into a savings account.
However, there are exceptions such as using paid rent as genuine savings as proof of your capacity to make regular mortgage repayments.
Other lenders do not have a specific policy regarding this. Instead, they use their credit scoring system which will decline your loan based on your asset position relative to your income.
This is an automatic system so you could be declined before speaking to a real human being! Banks are crazy sometimes.
Talk to us to find out which lenders do not require genuine savings for a guarantor home loan by giving us a call on 1300 889 743 or fill in our online assessment form.
Cheers,
Even though guarantor home loans allow you to borrow 100% of the purchase price, many lenders still require you to have 5% of the purchase price in genuine savings.
This is simply money you have saved yourself with regular deposits into a savings account.
However, there are exceptions such as using paid rent as genuine savings as proof of your capacity to make regular mortgage repayments.
Other lenders do not have a specific policy regarding this. Instead, they use their credit scoring system which will decline your loan based on your asset position relative to your income.
This is an automatic system so you could be declined before speaking to a real human being! Banks are crazy sometimes.
Talk to us to find out which lenders do not require genuine savings for a guarantor home loan by giving us a call on 1300 889 743 or fill in our online assessment form.
Cheers,