Potential credit bottlenecks that I need to be aware of as a guarantor

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: Potential credit bottlenecks that I need to be aware of as a guarantor

Post by Otto Dargan »

Hello Richard. Welcome to the forums.

First, there are only two or three Australian lenders who will accept a no deposit investment loan supported by a guarantor. We can assist you to buy one investment property, however, buying multiple investment properties is usually not accepted as the guarantor is taking an unnecessarily high risk for no return whereas the borrower is making all the potential profit.

Second, the serviceability looks very tight. Even though you’re acting as the guarantor, she would still need to be able to make regular repayments on her loan without significant hardship. Using the information you’ve provided, by choosing the right lender and amending your loan structure she could borrow up to $687,860. This estimate was arrived at using our borrowing power calculator which uses a similar method to that of lenders, however, we would need to conduct a more detailed analysis to get an accurate figure.

We specialise in guarantor home loans and investment loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a guarantor investment loan.

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

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

Re: Potential credit bottlenecks that I need to be aware of as a guarantor

Post by Otto Dargan »

Hi Richard,

Unfortunately, you can’t use your income to meet any shortfall in the serviceability. The serviceability relies solely on your grand daughter’s income and the estimated rental income from the investment property. The guarantors’ income is not considered for this purpose.

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: Potential credit bottlenecks that I need to be aware of as a guarantor

Post by Otto Dargan »

Hi Richard,

Generally, the limited guarantee is calculated with the help of the amount that you’re looking to borrow and the price of the property.
It’s calculated as: Limited guarantee = (loan amount / 0.8) - property price
Your limited guarantee size is $162,500.

Alternatively, you can also use our guarantor calculator to find out the size of the limited guarantee.

Our mortgage brokers specialise in guarantor home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to discuss your situation with one of our experienced mortgage brokers.

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

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