Re: Can my parents be guarantors, even if their property is in New Zealand?
Posted: Fri Oct 25, 2019 12:30 pm
Hello Blanche. Welcome to the forums.
No, unfortunately, the guarantor’s property must be located in Australia. Banks and lenders will not accept properties located outside of Australia as security.
However, there are other ways your parents can help besides being a guarantor.
One option is for them to give you a gifted deposit, that can be used towards a deposit for your home loan. With a gifted deposit, you might be able to borrow up to 95% of the property value. Please note that borrowing above 80% would mean that you’d be paying Lenders Mortgage Insurance as well. They can do this by releasing equity from their NZ property to gift you. To be clear, this will involve two separate loans.
The other way your parents can help is through a parent assist home loan (this is only offered through some lenders). Besides providing you with the deposit, you will have to pay back your parents with a small interest amount as low as 1%. You and your parents will need to get independent legal and financial advice before agreeing to the parent assist home loan.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Cheers,
No, unfortunately, the guarantor’s property must be located in Australia. Banks and lenders will not accept properties located outside of Australia as security.
However, there are other ways your parents can help besides being a guarantor.
One option is for them to give you a gifted deposit, that can be used towards a deposit for your home loan. With a gifted deposit, you might be able to borrow up to 95% of the property value. Please note that borrowing above 80% would mean that you’d be paying Lenders Mortgage Insurance as well. They can do this by releasing equity from their NZ property to gift you. To be clear, this will involve two separate loans.
The other way your parents can help is through a parent assist home loan (this is only offered through some lenders). Besides providing you with the deposit, you will have to pay back your parents with a small interest amount as low as 1%. You and your parents will need to get independent legal and financial advice before agreeing to the parent assist home loan.
Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.
Cheers,