Hi Moulin Rouge. Welcome to the forum.
Banks are very specific about who they’ll accept as guarantors but there are ways to get around this requirement with some lenders. Most banks will only allow guarantee from the borrower’s parents.
However, some lenders can consider guarantees from immediate family members such as siblings, grandparents, spouses, de facto partners or adult children. Friends, workmates or associates aren’t normally accepted because the banks want to make sure that the guarantor has a strong relationship with you.
If someone other than your parents is your guarantor, there are some specialist lenders that can help but you pay a premium to get approved.
With guarantor loans, some lenders allow you to borrow 105% of the purchase price and 110% if you have debts to consolidate.
Cheers,
Otto
Can my partner’s sister be a guarantor for us?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Can my partner’s sister be a guarantor for us?
Hi Moulin Rouge,
Guarantor loans have several benefits for you as the borrower:
Cheers,
Otto
Guarantor loans have several benefits for you as the borrower:
- You don’t need a deposit, allowing you to buy a home now.
- Save money by not paying an 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.
Cheers,
Otto