Family pledge home loan advice

Any general questions you might have in regards to loans and finance.
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blula
Posts: 1
Joined: Tue Nov 16, 2010 8:45 am

Family pledge home loan advice

Post by blula »

Hi,

I'm after some advice before we make an appointment to see one of your brokers. Our current situation is;

No deposit - we've been paying off our credit card debt which is almost finalised
$20k car loan
I have a small default of $263 which is paid and will drop off my credit report early next year, my husband has clear credit
We earn approx $200K before tax per year

My husbands parents own their home and are willing to help with a guarantor loan. Their home is worth approx $350K

What would your advice be? should we wait to see a broker until my default has cleared or seeing as it is such a small amount would it cause us a lot of difficulty getting approval for a family pledge guarantor loan?

Thank you!

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Family pledge home loan advice

Post by Otto Dargan »

Yes I believe we can help. If you can prove that you have made your current payments on time & have paid rent on time then this would create a strong case for them to make an exception and sign off on the approval even though there is a small default.

There is a lot of take into account when there is a default, the size, when lodged, when paid and which company lodged it. If it is from a utility company or a phone company then it is almost certainly fine with the lender.

You could also consider consolidating your current debt with the family pledge loan, however you will need to commit to not taking out any new debts and making large additional repayments to clear the guarantee. It wouldn't be fair on your parents if you took out new debts to buy a car or fund your lifestyle while you have a guarantee in place.

Please give us a call on 1300 889 743 and we can go through the details with you.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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