What benefits do a guarantor loan provides?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: What benefits do a guarantor loan provides?

Post by Otto Dargan »

Hi ddt. Welcome to the forum.

Congratulations on your marriage!

Guarantor loans have become very popular in recent years as they cost less than standard home loans.

In addition, loans with a guarantor have several benefits for you as the borrower: Moreover, guarantor home loans are the only way nowadays to borrow between 100% and 110% of the property value. As a first home buyer, you could borrow 105% of the purchase price of the property.

Our mortgage brokers are experts in guarantor home loans. Please call us on 1300 889 743 and we can go through your options with you.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What benefits do a guarantor loan provides?

Post by Otto Dargan »

Hi ddt,

Usually, guarantees are set up because the borrower has no deposit so removing the guarantee most often depends on how much the property appreciates in value and how much in extra repayments the borrower can afford to make.

Ultimately, you do not want the guarantee to be in place for the entire term of the 30 year loan. You should apply to the bank to remove the guarantee when the following conditions have been met:
  • You can afford the repayments without any assistance.
  • Your loan is for less than 90% Loan to Value Ratio (LVR) (ideally 80% or less).
  • You haven’t missed any payments in the last 6 months.
  • Most people are able to remove the guarantee somewhere between 2 and 5 years after they initially set up the loan, although this can vary significantly.
You can still remove the guarantee if you owe more than 80% of the property value but you may have to pay LMI to achieve this.

Please call us on 1300 889 743 or enquire online to speak to a specialist mortgage broker who can assist you to obtain a home loan.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What benefits do a guarantor loan provides?

Post by Otto Dargan »

Hey Robyn,

Many lenders have Equifax’s score feed directly into their own scorecard that they use to assess loan applications.

Others ignore the Equifax Score and just use the data from your credit file.

Whilst your score with Equifax will not be the only factor that the lender considers, it will make a big difference to the lender’s own credit score and the outcome of your application.

If this may be a problem for you then you can consider:

Using our credit score calculator to identify the problems with your situation.

Reading about lenders that don’t credit score.

Calling us on 1300 889 743 or completing our free assessment form so that one of our mortgage brokers can assist you.

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

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