Who is an acceptable guarantor?

Most banks will only allow:

  • Parental guarantees i.e a guarantee from your parents or co-borrower’s Mum and Dad.
  • Adult children.
  • Spouse (this is commonly for asset protection reasons).
  • De facto partners.

The following immediate family members are also acceptable as exception to standard policy:

  • Siblings.
  • Grandparents.

The following family members are typically unacceptable but can be acceptable depending on their relationship with you:

  • Uncle and aunt.
  • Other family such as cousins.

Who is not acceptable?

The guarantor needs to have a strong relationship with you so, generally speaking, the following people are not acceptable:

  • Friends, unless a term deposit is used as security.
  • Work colleagues.
  • Associates.
  • Former de facto partners or spouses.
  • Anyone else who doesn’t have an immediate 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.

Please call us on 1300 889 743 or complete our free assessment form to discover how we can help you qualify for a guarantor loan.

What is the eligibility requirement to be a guarantor?


They must be at least 18 years of age.

Guarantor property must be in Australia

Banks won’t accept a property located overseas as security for your home loan.

They need to be an Australian or New Zealand citizen, however, some lenders will accept guarantors that are living and working overseas.

It’s not uncommon for people later in life to move overseas and keep their home in Australia as an investment property.

Please complete our free assessment form to speak with one of our mortgage brokers.

Legal advice

Your guarantor needs to be of sound mind and will need to seek both legal and financial before making the decision to act as a mortgage guarantor.

Sufficient equity

The guarantor needs to either own their property outright or owe less than 80% of the property value on their mortgage.

There’s no hard and fast rule with this just be aware that the less equity you have to work, the harder it will be to borrow 100% of the property plus costs, avoid having to pay a deposit and avoid genuine savings.

Must currently be working

Most Australian banks will not accept a security guarantee from a retired or elderly guarantor.

Not all lenders are the same!

Your guarantor can be a self-funded retiree or even on the pension (if they’re over 65 years of age) as long as they obtain legal advice prior to signing the loan offer.

They also need to present a solid exit strategy to the lender.

For immediate family

For the bank to consider immediate family, it comes down to the nature of their relationship with you.

It’s common for people to have been raised by their grandparents or uncle and aunt, particularly in families in Asian cultures.

If your family member can provide a witnessed statutory declaration confirming their close relationship with you, this can strengthen your case with the lender.

What if your guarantor doesn’t qualify?

In some cases, your mum and dad won’t be able to act as guarantors on your mortgage because they don’t have enough equity in their property or they’re close to retirement.

Other times, parents may simply not be comfortable in going as guarantor. It’s nothing personal (probably) but don’t worry!

If you don’t have a deposit, there are other no deposit solutions available to you including using a personal loan or asking your parents for a non-refundable gifted deposit.

The third option is to buy a property with a friend. This is where you both go together on the mortgage under a co-borrower or co-ownership investment loan.

In this way, you split the deposit and genuine savings requirement in half, get into the property market sooner and you can both reap the rewards of property ownership.

Want to know more about guarantor loans?

Check out the guarantor loan page for more information.

After that, give us a call on 1300 889 743 or complete our free assessment form to find out if you and your guarantor qualify for a no deposit home loan.

  • Annabelle

    Is it possible to get a 100% land and construction loan with the help of a guarantor?

  • Hey Annabelle. yes, you may be able to borrow 100% of the land and construction costs with the help of a guarantor. However, many lenders do not allow “loan increases” on guarantor loans so if you buy the land and then apply for the construction loan later, it may be declined.

  • Shade

    My parents live and work in NZ. Will they qualify as guarantors if I buy in Australia?

  • Hi Shade,
    They can only be a guarantor if they own property in Australia. If they only own property in NZ then they can refinance their home, release equity and gift or lend this to you as a deposit. You can read this page for more info https://www.homeloanexperts.com.au/genuine-savings/

  • Suzie Willis

    My parents are retired and living off their super, they own their house – are they able to act as guarantors?

  • Hi Suzie,
    Yes some lenders will accept a retired guarantor who are living off an allocated pension from their super fund. If you’d like our help then please contact us https://www.homeloanexperts.com.au/free-quote/

  • Sarah Veness

    my dad and step mum have just agreed to go guarantor but only bought a house together 4 years ago and im not sure if they have more then 80% still owing… if they do are they inelligible as guarantors or can they still guarantor some of the loan?

  • Hi Sarah,
    You can use our guarantor calc to see if they’re eligible https://www.homeloanexperts.com.au/mortgage-calculators/guarantor-loan-calculator/
    If they don’t have much equity then in most cases the easiest way is for them to do a small loan increase and then lend this to you as a deposit. You can then get a 90% or 95% loan on your own https://www.homeloanexperts.com.au/genuine-savings/borrowed-deposit-home-loan/

  • Misty Bee

    Can a trust company act as guarantor?

  • Hi Misty
    Yes this can happen but it is an exception to policy and it is rare.
    In the past we’ve done a couple of applications where the parents owned investment properties in a trust and their son / daughter wanted to buy a home using a guarantee from their parents.
    Please call us on 1300 889 743 and ask for Daniel as he’s trained in this.

  • Alexandra Cervantes


    Can i be my own guarantor with my investment property, rather than getting an equity loan?


  • Yes Alex we can help with this. The legal structure is slightly different as you would technically be a borrower but we would set it up with a mortgage over your other property just like a guarantor loan.
    Please call us on 1300 889 743 and ask for a guarantor loan expert or an investment loan expert. Either can assist you.

  • Ella

    Hi, I would like to get a home loan with my dad as my guarantor but he only speaks Italian so I’m not sure how to explain it all. Can you guys help me with this?

  • Yes, we have dealt with such situations before and we know how to deal with this. Please note that prior to settlement, the guarantor must seek independent legal advice from a solicitor who speaks Italian. You can call our office on 1300 889 743 or enquire online through the link below to discuss in detail with one of our mortgage specialists:

  • Kerry Rhodes

    Does the guarantor have to go on the loan?

  • Hi Kerry,
    The guarantor is a signatory to the loan agreement. They are not required to make repayments unless the borrower is unable to do so.

  • Kyounghwa Choi

    To be a guarantor needed to have own property?
    I am a mother of 18yrs old girl who has prime job. I can pay deposit for new property for her and could support her repayment. I am employed Aged care but I did not brought my own property as I live in my friend’s house.

  • Hi Kyounghwa
    You could potentially buy the property together that way both of your incomes can be used and your deposit as well. This is likely the best way in your situation but we’d need to complete a full assessment to be sure.

  • Kyounghwa Choi

    Am I eligibility to be a guarantor for my daughter despite I did not have my own property?

  • No.
    You’d need to be a borrower which means you’d also need to own part of the property. There isn’t too much difference except that you are a part owner of her property.

  • Sam

    My dad is guarantor for my sister. He is retired and used land he owns to guarantor her mortgage. Can he guarantee part of my deposit using this land? or can you only be a guarantor once? He is a self funded retiree and also owns his own home outright. But I have a feeling that my sisters bank used both the house and land as guarantee for her mortgage. We only need him to guarantee around $55k of our deposit. Thanks.

  • Hi Sam,
    Yes this is possible however we’d need to know more to be sure what you can do. Specifically:
    – How much is the land worth
    – How much is the guarantee for your sister and with which bank?
    – How much do you want to buy a home for?
    – How much would you like to borrow? Typically 105% of the purchase price is what most people do depending on if they are eligible for first home benefits or not.

  • Craig

    My parents want to go guarentor for myself and my husband.
    They owe less than 10% of market value on their property but they are also on pensions (not age pensions).
    We have about 5% deposit.
    Can they go guarantor with my husband being the only income earner for the household and them being on pensions?

  • Hi
    Yes this is possible however we’d need to review your situation in full to confirm. Having some savings of your own gives your application a lot of strength. The type of pensions they are on can be important, the key is that they are not disadvantaged and that they are of sound mind. The lender may require that they get legal advice prior to settlement of the loan.

  • kungii

    I was told that my mum can’t be a guarantor, because the property is owner occupied. Is this true?

  • Hi Kungii,
    Recently, some banks have introduced a policy that guarantors with owner occupied properties couldn’t give a guarantee, instead it should be their investment property. Yet, there are a few banks who still accept the owner occupied property as a guarantee. Call us on 1300 889 743 or enquire online https://www.homeloanexperts.com.au/free-quote/ and we’ll help you find a lender which accepts these properties.

  • Lois

    Hi, if we were to act as guarantors for our daughter and her husband, would that affect our DVA pension?

  • Hi Lois,
    Agreeing to go guarantor on your daughter’s mortgage won’t affect your DVA pension. However, if for whatever reason they can’t repay the loan and you, as guarantor have to pay it, the money you pay will be regarded as a gift to your child and the gifting rules apply. You should always seek legal advice before agreeing to become a guarantor.

  • Jack Donahue

    Hi. I’ve been with my fiancé now for 10
    years(we just haven’t got around to being married yet haha). She has a bad credit rating and we’re trying to keep her off the paperwork, so it’ll just be me going for the loan. Her father is willing to be guarantor for myself, I’m wondering if this is possible?

  • Hi Jack,

    I’m afraid if the guarantor’s child (your fiance) is not on the loan then a guarantor loan is not possible here.
    You can apply as a single applicant if you have a minimum of 5% of the property value as deposit plus cost to complete the purchase. Alternatively, if your de facto in-law can gift you the required deposit that may be acceptable to some lenders. Finally, there are several bad credit home loans available with specialist lenders and depending on the type and the default amount, you may even qualify with a major lender. Please speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our online assessment form: https://www.homeloanexperts.com.au/free-quote/ to discuss your situation.

  • Debbie

    Hi, we are just after some information as my husband and I were going to ask his grandparents to go guarantor so we can get in on the property market faster as we have a growing family. They own their home outright but the fact that they’re in their 80s is what I was worried about because once they pass we didn’t want to ruin the way their house gets divided up in their will or have our loan cancelled.

  • Hi Debbie,
    Lenders will not let go of the property until their portion of the debt is paid off, so it might intervene with the will if the unfortunate event happens. Considering their age, not a lot of lenders will accept them as guarantors.

  • Jess Henschke

    Hi me and my partner are looking at building. Can my dad go guarantor on the loan if he owns his own house with no mortgage but isn’t working at the moment

  • Hi Jess,
    With some of our lenders, as the guarantor (your father) is only using the security in lieu of the deposit, their income verification is not needed as such they don’t need to be working. Lenders may also ask for an acceptable exit strategy in such cases.

    If your guarantor is retired, there are only a few lenders who can consider retired guarantors on a case by case basis. Your guarantor can be a self-funded retiree or even on the pension (if they’re over 65 years old) as long as they obtain legal advice prior to signing the guarantee documents. Many lenders prefer the security being used by a retired guarantor to be an investment property rather than a principal place of residence (PPOR) as an investment property can easily be sold without hardship. However, when using an PPOR as security, they’ll also need to present a solid exit strategy to the lender. Our specialist mortgage brokers can do a full assessment and present the scenario directly with the lenders credit department to work out which lenders will accept your situation/exit strategy. Please give us a call on 1300 889 743 or fill in our online assessment form: https://www.homeloanexperts.com.au/free-quote/ to discuss your situation.

  • Sorkin

    Hi, me and my partner are purchasing a house, it is $515k. My parents are retired but have a house worth $1.1 million. They are both retired and their only income is pension payments. Would they be able to go guarantor?

  • Hi Sorkin,
    Yes, they may be able to go guarantor for your home loan. However, not all lenders accept retired guarantors only a select few lenders do. The key is to apply with the right lender.

  • Lisa

    My parents are currently guarantor for my brother, can they also be my guarantor?