Guarantor on the disability pension

Any general questions you might have in regards to loans and finance.
HayleeRo
Posts: 1
Joined: Wed Aug 21, 2019 7:56 pm

Guarantor on the disability pension

Postby HayleeRo » Wed Aug 21, 2019 8:04 pm

The title says it all.

My partner wants to buy the house he’s been renting the last year.
He only has 3% deposit saved so he’s going through with the guarantor home loan with greater bank. The home loan lady said that his mum may or may not be eligible to be guarantor if on a pension. She doesn’t own a house, has no loans or anything, she’s on the disability pension due to Tumours and hearing problems so there’s no way she’s able to work anymore.

I remember the lady saying if she’s on the disability pension, there’s a chance that he can get approved for the loan but I just wanted to double check if I wasn’t just hearing her wrong. So my question is, will being on a disability pension make his mum eligible to be guarantor?

Thankyou in advance :)

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7725
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Guarantor on the disability pension

Postby Otto Dargan » Thu Aug 22, 2019 4:31 pm

Hello HayleeRo. Welcome to the forums.

Unfortunately, your guarantor/parent needs to own a property to act a guarantor for you. Basically, with a guarantor home loan, they can use their property to secure your home loan. So, instead of having to come up with a deposit, the deposit is guaranteed by your parent's property.

You can still apply for a low deposit home loan with a minimum deposit of 5% of the purchase price.
A 3% deposit home loan is possible, but the lending criteria are very strict.

If you're a first home buyer, you may qualify for the first home owners grant (FHOG) which you can use in combination with your deposit. However, the property has to be new to qualify for the grant. When purchasing an existing property you can get stamp duty exemptions/concessions.

We specialise in low deposit home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a low deposit home loan.

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


Return to “Home Loan Forum”

Who is online

Users browsing this forum: No registered users and 2 guests