guarantor loan with deposit

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mel
Posts: 1
Joined: Mon Jan 11, 2010 2:40 pm

guarantor loan with deposit

Post by mel »

my brother has offered to be a guarantor for me and my partner to buy our first home in WA. we rent out our house in UK on interest only mortgage and have around $100,000 in equity but do not want to sell it. we will also have $25,000 deposit to put down. we earn aound $145,000 between us gross. we know that if we have a small depsit we will have to have lenders insurance but would like to know if anyone knows if we can borrow more with the $25,000 deposit and have my brother guarantee some of the loan? we have been told by our bank that we can borrow $475,000 with our $25,000 deposit.

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Otto Dargan
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Re: guarantor loan with deposit

Post by Otto Dargan »

Hi Mel,

It is possible that you could borrow more with the guarantee as the size of your deposit is likely to be the limiting factor. With a guarantee the size of your deposit is less important.

The best way to structure the loan will depend on your brother's situation.

Are you a permanent resident / citizen?
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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