Guarantor Option?

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michaeljohnmusic
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Joined: Sun Apr 18, 2010 2:42 pm

Guarantor Option?

Postby michaeljohnmusic » Sun Apr 18, 2010 2:53 pm

Hi There,

My partner and I are looking to buy our first home, we both earn approx $50k in steady jobs, have been renting the same house for nearly $2000 a month for over 3 years, and have parents willing to be guarantors for us to borrow 100%. We have savings of around $7000, however my partner has a (paid off) credit card default on his credit file with a clearance date in 2012.

Do you think we would get approval for a home loan for around $500k with a guarantor?

Thanking you in advance for your advice.

Michael

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Otto Dargan
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Re: Guarantor Option?

Postby Otto Dargan » Mon Apr 19, 2010 8:43 am

Hi Michael,

Your savings position and proven ability to pay a high amount each month in rent is excellent and lenders will view this favourably. However the default is from a financial institution (as opposed to for utilities) which will count against you. Home loans supported by a guarantee do not need LMI approval so depending on the lender they can sometimes be a little more lenient than a normal loan.

How much is the default for? When was it lodged and when was it paid? Which company is it with? Is there a good reason for the default?

If you can let me know that then I can work out if you would be eligible.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

michaeljohnmusic
Posts: 2
Joined: Sun Apr 18, 2010 2:42 pm

Re: Guarantor Option?

Postby michaeljohnmusic » Mon Apr 19, 2010 5:06 pm

Hi Otto,

Thanks for the advice so far. The default was for about $4000 with St George. It was a credit card that my partner didn't change address with when we returned from living in the UK and didn't pick it up until a credit file check. It was listed in 2006 and paid off in July last year.

Thanking you,

Michael

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Otto Dargan
Mortgage Specialist
Posts: 7728
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Guarantor Option?

Postby Otto Dargan » Mon Apr 19, 2010 5:17 pm

This one can be considered if you can provide evidence of your time overseas in the UK (the more the better). One of our lenders can consider debts of up to $5,000 paid > 6 months ago on a case by case basis. This is by no means an easy loan. The approval will depend on the overall strength of your situation, what evidence you can provide of your time overseas and also the letter you write explaining your default.

Please contact us on 1300 889 743 to discuss.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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