Can You Get A Home Loan Without Any Savings?
Yes! You can buy your dream home without any savings by applying for a guarantor loan!
A guarantor loan allows you to:
- Borrow up to 105% of the property price
- Buy without a deposit
- Consolidate minor debts into your home loan
- Avoid paying LMI (Lenders Mortgage Insurance)
- Get a discounted interest rate
Guarantor loans are also the only way to borrow more than 100% of the property price in Australia!
How do guarantor loans work?
- Your parents provide a limited guarantee secured over a term deposit or a property they own.
- One of our lenders approves your home loan as long as the security amount is adequate. You don’t need a deposit!
- All of the costs of the loan, including stamp duty and conveyancing fees, are covered by the loan.
- Once you have paid down your loan to less than 90% of the property value (ideally 80% or less) you can then apply to remove the guarantee.
Frequently Asked Questions
- Will the bank accept foreign property as security?: You cannot use foreign property as security to get a home loan in Australia however your parents can still gift you a deposit.
- Is it okay if my parents already have a mortgage on their property?: There are some lenders who can accept a second mortgage.
- Can my sister provide a guarantee?: Most lenders only accept your parents as guarantors but some can also accept grandfathers, uncles or siblings.
- How do I know if I qualify?: Use our Guarantor Loan Calculator to see if you qualify for a guarantor loan.
Guarantor loans are a great way to get a home loan and save money but you need to be careful. Lenders are often conservative when it comes to this type of loan but a good mortgage broker can find you the right lender to match your situation. It is also important to think about your exit strategy since you want to remove your guarantee as soon as possible.
If your parents can help you with a guarantee call us on 1300 889 743 or enquire online and let us help you buy your dream home today.