A guarantor home loan is the only true no deposit solution allowing you to borrow the full amount of the property value as well as the funds needed to complete the property purchase.
With a guarantor home loan:
- You can borrow up to 100% - 105% of the property value (110% for debt consolidation and purchase).
- You don’t need a deposit allowing you to buy now.
- You save money by not paying Lenders Mortgage Insurance (LMI).
- Discounted interest rates are available with some lenders.
- You can consolidate minor debts such as credit cards and personal loans when you buy your home.
- You can limit the size of the guarantee.
With a low deposit or just the minimum 5% deposit, you may still qualify for a home loan. You may have limited lender choices as such the interest rate that you get may not be the best compared to a guarantor loan. The bigger the deposit you have, the more leverage we have when negotiating a better interest rate.
In addition to your 5% deposit, you’ll need extra funds to cover the associated costs of purchasing a property like stamp duty, LMI and other miscellaneous fees. Provided the guarantor’s property has enough equity, you can even borrow the cost of completing the purchase of the property with a guarantor.
We will need to do a full assessment and look at your situation thoroughly before deciding on a course of action.
Speak with one of our experienced mortgage brokers by giving us a call on 1300 889 743 or by filling in our free assessment form to find out if you qualify for a guarantor home loan.
Cheers,