Page 1 of 1

Re: Can I use my brother as my guarantor?

Posted: Fri Apr 12, 2019 3:05 pm
by Otto Dargan
Hi Amanda,

Welcome to the forums.

Most lenders tend to be very specific with who they accept as guarantors. Most banks only allow guarantee from the borrower’s parents.

However, there are selected lenders who can consider guarantees from immediate family members such as siblings, grandparents, spouses, and de facto partners as long as they are over the age of 18.

Friends, workmates or associates aren’t normally accepted because the banks want to make sure that the guarantor has a strong relationship with you.

Our mortgage brokers are experts in guarantor home loans. Please call us on 1300 889 743 or fill in our free online assessment form and we can go through your options.

Cheers,
Otto

Re: Can I use my brother as my guarantor?

Posted: Fri Apr 12, 2019 3:36 pm
by Otto Dargan
Hey Amanda,

Guarantor loans have several benefits for you as the borrower:

- You don’t need a deposit, allowing you to buy a home now.
- You can save money by not paying a Lenders Mortgage Insurance (LMI) premium.
- Discounted interest rates are available from some lenders.
- You can consolidate some minor debts, such as credit cards, when you buy your home.
- You can limit the size of the guarantee.
- You can borrow 105% of the purchase price.
- You can borrow 110% if you have any debts to consolidate.

Cheers,
Otto

Re: Can I use my brother as my guarantor?

Posted: Fri Apr 12, 2019 3:45 pm
by Otto Dargan
Hey Amanda,

Excellent question!

Guarantors are ultimately liable for your home loan in case that you default.

The reality is that banks try everything to solve whatever problem that you might be facing before moving to sell the guarantor’s home.

The bank knows that it will struggle to break even by going down this path so they would much rather that you keep paying your mortgage.

To do this, they will want to work out why you’re having trouble managing your repayments and whether a solution can be found.

Cheers,
Otto