Re: What is a parent assist home loan? How does it differ from a guarantor home loan?
Posted: Fri Sep 20, 2019 7:26 pm
Hello Lucille. Welcome to the forums.
A parent assist home loan is where your parents provide you with a loan of up to 20% of the property value. Essentially, you’re borrowing money from your parents, but it is not a gifted deposit as you would need to pay them back with interest.
By doing so, you avoid the cost of paying Lenders Mortgage Insurance (LMI) and the best part is you and your parents get to decide on the interest rate, which can be less than 1% p.a.
You and your parents will have to get an independent legal and financial advice before moving forward with this loan. Once all parties have done that, you will need to enter a legal binding agreement that will be overseen by a solicitor.
Parent assist home loans differ from guarantor home loans because your mom and dad are not putting their home as security to finance your home loan. This means that if your parents do not own property, they can still help you finance your home loan under the parent assist home loan scheme.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a parent assisted home loan.
Cheers,
A parent assist home loan is where your parents provide you with a loan of up to 20% of the property value. Essentially, you’re borrowing money from your parents, but it is not a gifted deposit as you would need to pay them back with interest.
By doing so, you avoid the cost of paying Lenders Mortgage Insurance (LMI) and the best part is you and your parents get to decide on the interest rate, which can be less than 1% p.a.
You and your parents will have to get an independent legal and financial advice before moving forward with this loan. Once all parties have done that, you will need to enter a legal binding agreement that will be overseen by a solicitor.
Parent assist home loans differ from guarantor home loans because your mom and dad are not putting their home as security to finance your home loan. This means that if your parents do not own property, they can still help you finance your home loan under the parent assist home loan scheme.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a parent assisted home loan.
Cheers,