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Guarantor Loan Calculator

Guarantor Loan Calculator

Your purchase details

Your purchase

You
Purchase price?
$
Loan amount?
$

Your guarantors

Your Guarantor
Property value?
$
Home loan?
$

Loan details

Which property is the Guarantor using as security? ?
Is the Guarantor still working? ?
Do you have 5% in genuine savings? ?
Is your loan a construction loan? ?

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Disclaimer

How does this calculator work?

This calculator is designed to help you work out the size of the limited guarantee and also to work out if you are likely to have trouble obtaining approval with some lenders.

Unlike with a standard home loan, the banks all have very different policies for guarantor loans. As a result many people approach their bank, only to be declined because of a lending guideline that doesn’t even make any sense!

This is why it is important to find out how the banks will view your application. Applying with the right lender first time around prevents you from damaging your credit score by having too many unnecessary enquiries on your credit file.

Learn more about guarantor loans

We have written a comprehensive guide to guarantor loans which explains everything from the types of guarantor loans available, to limiting the size of the guarantee and even how to borrow more than 100% of the purchase price!

We can help!

While most bank managers and mortgage brokers have only approved a few guarantor loans in their entire career, we deal with them everyday! We know exactly which lender can help, how to get your loan approved and most importantly how to setup the loan to maximise the protection for the person who is guaranteeing your loan.

If you would like to speak to a mortgage broker who can help please call 1300 889 743 or enquire online and one of our specialist brokers will contact you to discuss your situation.

  • Monica Rutner

    Hi, I recently got PR, now I want to buy a house of my own. However, I don’t have sufficient savings of my own, and one of my friend has suggested me to try with a guarantor, and he’s even agreed to give me a guarantee.

    Will a friend as a guarantor work to obtain a home loan? Hope to have some valuable insights from you guys.

  • Hi Monica,

    Most lenders will only accept a parent as a guarantor. Some of our lenders can consider other relationships such as grandparents, siblings, extended family (aunt / uncle / cousin) and friends. Where the guarantor is not a family member the lender will do additional verification and check but it is usually not a problem.

  • jimbob

    I wanted to confirm under a guarantor arrangement whether the “Total debt secured on guarantor’s property” is the limit of liability the guarantor has on the transaction? Also at what point does this liability reach $0?

  • Hi Jim

    The total debt secured on the guarantors property is their current loan + the size of the guarantee they are providing for your home loan. If they have no debt on their property then this is just the limited guarantee they are providing for your loan.

    You need to apply to remove the guarantee, it doesn’t come off automatically. Most people do this once they owe below 80% of the property value as it avoids lenders mortgage insurance
    https://www.homeloanexperts.com.au/guarantor-home-loans/removing-a-guarantor-guarantee/
    https://www.homeloanexperts.com.au/lenders-mortgage-insurance/

  • jimbob

    Thanks

  • Dodgshun

    My bank told me that they would like to see me to have 5% in genuine savings but I don’t have any, which is exactly why I’m going guarantor in the first place. Isn’t genuine savings unnecessary when we have a guarantor?

  • Hey Dodgshun,

    Yes, genuine savings is not required in most cases, however, this isn’t set in stone so despite having a guarantor, some lenders still require you to have saved 5% of the purchase price. You can speak with one of our mortgage brokers on 1300 889 743 if you’d like help in finding a lender that can accept your loan application without any genuine savings.

  • Dodgshun

    Yes, I’d very much like that. Will be calling soon. Thanks.

  • Gina

    Hi, we want to refinance our own house to buy a block of land + the stamp duty and other fees, but the current value of our property is not enough to cover it all. If we use a guarantor would it help to increase our loan amount? thanks

  • Hi Gina,
    Yes that will work. There’s some complications with a guarantor loan that is used to build a house but as long as we set it up the right way then it is fine. If you like fill in this https://www.homeloanexperts.com.au/free-quote/ and a guarantor loan expert will give you a call to discuss.

  • Sam Finlayson

    Hi.
    I would like to purchase my 1st property. My parents have a large transport business but no property. Are we able to use the businesses assets for a guarantor loan?

  • Hi Sam,
    You’ve got two options with this. They can put up a term deposit (cash) as security for the loan
    The other option is that they get a small business loan and lend this to you as a deposit. Their business banker can do that or they can call us.
    Or maybe another relative owns property and is willing to be a guarantor?

  • Sam G

    Hi.

    I am looking to purchase my first property early next year. My parents have agreed to guarantee the loan, once they refinance. They would be using their home property and they do still work (they are both under 50).

    I am looking at modest properties around $150k and have just recently started a term deposit with the required 5% locked in for next 3 months. However I also have a Personal Loan with a balance of $11000 that was taken out in May 2016 (increased from prior Personal Loan).

    My question is: Will lenders make the assumption that the savings were not genuine, and were the result of the Personal Loan? The saved payments do generally increase sporadically and I would say that they did not actually come from the Personal Loan (which was used to pay off credit cards and holiday). Or because the savings are in a term deposit, the savings pattern does not matter?

    Is it better to put my 5% savings into the personal loan, reducing the balance, and starting my savings process again? I am worried that lenders will not consider my savings genuine and would prefer to have a “game plan” before I actually make the move to apply…

  • Hi Sam
    Yes many lenders will think the 5% gen savings is actually from the personal loan. Others will be ok with this. The good news is that some of our guarantor loan lenders don’t require genuine savings anyway.

    It’s best we assess your needs at the time you buy and work out if it’s best for you to use your savings to pay out your personal loan or not. Likely the best course of action is apply while your savings are in the term deposit and then after approval pay out part of your personal loan.

  • Althea Gwebraedd

    Hi,
    Little confused about how the loaning works for guarantor. Just as an example, if the amount I wished to borrow was $500,000 and $100,000 was secured against the guarantor property, would the repayments be on the full $500,000 loan, or the $400,000? Would the guarantor’s repayments on their own loan be affected in any way by becoming a guarantor?

  • Hi Althea,
    You would make payments on the full $500,000. The guarantor would only be asked to make payments if you were unable to make payments.
    The guarantor’s existing home loan payments would remain the same.
    If you’d like our help then please contact us https://www.homeloanexperts.com.au/free-quote/

  • Carolyn Denton

    My parents are already guarantors on my investment property loan (for 130k). Their property is worth about 600k with no mortgage. Can they also guarantee another mortgage for me as an owner/occupier?

  • Hi Carolyn
    Potentially yes this is possible. It would depend on a variety of factors so it’s best to discuss this in detail with one of our mortgage brokers. We’ve done similar loans before.

  • Joanne Paroci

    Hi again
    Are you able to give me details on any broker residing in sydney south west whom are ready and willing to help us immediately?

    We’ve been getting assistance off one of your brokers but its just delaying.

    Thanks

  • Hi Joanne please call us on 1300889743 and ask for Maria and she’ll sort this out for you.

  • Jessie Lou Louis

    Hello we are wanting to purchase a home for $160, 000 and are wanting to ask our parents to be guarentee for us. How much must there house be worth to be accepted?? We have a few option but one if the houses is only worth $150,000 will read work as its only $40,000 that will be held on there end for the 5 yr term I believe

  • Maurinus Stander

    Hi, My partner and I want to buy a little block of land soon for about $400 000 and then build a little container home on it for less than $100 000, we both have a full time job and earn about $100 000 a year before tax together.
    What would be the best way for us to take out a loan? My parents are in the middle of paying of their house and have a very decent income, we have no dept at all, what should we do?

  • Hi Maurinus,
    You can get a guarantor loan for both the land and construction. Note that some container homes aren’t acceptable to banks so you may need to discuss this with our broker or consider building a different type of house. Many customers end up just buying an existing home because it’s much easier.

  • Sarah Veness

    Hi my husband and I are looking at buying our first property we are looking between 3-500000 mark. We have approx $12000 in genuine savings and we’re going to ask my parents if they would guarantor what would be their limit? Just so I can go into this knowing all the information thanks

  • Hi Sarah,
    It depends on how much you spend on a property, if you borrow the stamp duty as well, if you get the first home owners grant and if you use your savings or keep them aside. The maximum guarantee would be for 34% of the purchase price. More likely it would be around 28% for your situation.

  • Tullis

    My guarantor has a $650k home with no debt on it. He isn’t working and doesn’t have a super as well. Is this okay for my $380k home loan?

  • Yeah this should be okay with some banks. Some lenders may want the guarantor to be working though. You’ll need to apply with the right lender to get approved so please call 1300 889 743 if you’d like to discuss this with an expert guarantor home loan specialist.

  • Emily

    Hi so we are in abit of a tight spot.
    We have 15k deposit for stamp duty also my dad agreed to be a guarantor he is at the moment guarantor for my brother for 150k. My dad owes 90k the house value is approx minimum 400k. We are just going with the worst case scenario. Now he isnt working and a few people have said dont even try youll get decline but others are on the contrary. We are wondering if we should just try our luck and apply. The lender doesnt have a must be employed guarantor criteria. We want to purchase no more than 360k. Not sure what to do so so stuck. He is left with approx 163k equity BEFORE us.

  • Hi Emily
    The equity calculation is quite complicated when there’s already a guarantee on the property. We’d likely need to see a full application to figure it out. If your brother got his loan some time ago then it may be possible to remove the guarantee now or reduce the size of the guarantee. We’d have to assess this to work out if it’s an option.

  • Mel Clausen

    Hi there. We really want to buy we have $27000 that my mother in law has given us as part of my husbands inheritance. We are looking at a property for sale at $325000, it was knocked backed only because of the properties postcode and they will only loan a max of $300000 for that area. My parents are happy to go garantor for us. They have a property valued at $550000 with about $150000 (I think) owing. My dad has just stopped working due to having a back injury and will return to work in about 10 weeks. My mother in law will also go on the mortgage. Hubby earns around $45000 pa and mother in law earns $88000 pa. Both are working full time and have been for ages. Can we borrow?

  • Hi Mel,

    Yes, you should be able to borrow. Have you had a read of the guarantor home loans guide? If not, please do check it out for detailed information on this option: https://www.homeloanexperts.com.au/guarantor-home-loans-new/

    Our mortgage brokers specialise in guarantor mortgages and know the policies of almost 40 lenders on our panel. Please call 1300 889 743 if you’d like to discuss your personal situation and loan needs directly with one of us, or simple fill in our online assessment form for a free quote:
    https://www.homeloanexperts.com.au/free-quote/

  • Matthehat

    Hi there.

    I intend to buy a block of land for 250k. I am an experienced architect with various industry contacts that I intend to utilise to build a modular house overseas and ship it to site for approximately 300k. This includes footings, shipping, taxes, assembly, and all other costs. I would manage the process myself but I can have a registered Aussie builder and engineer involved for sign off, certificates, etc. So I want a land and construction loan for 550k. I anticipate the place will be worth about 850k when complete. I have about 90k in shares and savings and do not wish to use this to fund anything. My mum is willing to go guarantor on the loan for me. She owns her house outright (worth about 2 million) but is retired.

    Please advise if you think it would be possible to secure a loan under the circumstances above. Thanks!

  • Hi Matthehat,
    We have lenders in our panel who can accept the retired guarantors. Please call 1300 889 743 to discuss all this in detail with an expert mortgage broker. Or you can simply enquire online and one of us will contact you instead:
    https://www.homeloanexperts.com.au/free-quote/

  • Clinton Dicker

    Hi my n

  • Hi Clinton,
    I’d estimate they’d need to guarantee your loan for $110,000 – $150,000 depending on the way it is structured and how much you borrow.
    For construction loans it’s best to borrow as much as possible in case of the cost blowing out. Then when the house is complete you can just pay off the part of the loan that you didn’t use.
    Please make sure that you don’t 100% commit to a purchase and contract without formal loan approval. It’s a big risk! Guarantor loans can take a little extra time so ask for an extended finance clause.

  • Tara McNeany

    My guarantors home is worth over 1mil and has no mortgage on it, the owner is on disability pension and owns her house outright, could I still get approved for a $350k loan since she will be on disability pension for the rest of her life?

  • Hi Tara,
    Yes you can qualify for a loan as long as your guarantor’s disability is a physical one and we have evidence that you are good with your money such as a tenant ledger showing on time rent payments or 6 months bank statements showing you don’t overdraw your account.
    This isn’t something accepted by all lenders but there are banks that can help. Please complete this if you’d like our assistance https://www.homeloanexperts.com.au/free-quote/

  • Eve

    Hi, just wondering if this would be possible – we have seen a five acre property we like with asking price $360-396k, we would need to eventually extend the house as its only 2 bedroom & we have 2 children (a boy, 3 & a girl, 1 who won’t want to share forever!) We unfortunately don’t have any genuine savings, we were going to get $50k as a gift from the in laws but unfortunately my mother in law fell ill & passed but my husband believes his (retired) father will go as guarantor, his property is worth roughly $1.1 million with nothing owing however we have a $6500 credit card (with about $6000 owing) + 2 car loans one about $21k & the other $42k. My husband earns a take home pay of around $1400 a week (ie net) & I’m a stay at home mum, unfortunately i can’t get full time care for the kids (limited care in the Victorian country town we live in) so can’t get a job at the moment, my mother lives with us (& works) & contributes to rent etc & will be living in a granny flat on the new property so will again be contributing to the mortgage, she thinks she could get around $40-50k as a contribution if needed – would any banks even consider us?

  • Hi Eve,
    Firstly you can use this calculator to see if you can comfortably afford the loan size that you’re looking for https://www.homeloanexperts.com.au/how-much-can-i-borrow/
    If your income is sufficient and your father in law is willing to be a guarantor then we may be able to assist. Your mum’s contribution should be used to pay out your existing debts and then the guarantee can be used to help you buy a home.
    This is a complex situation and we’d need all of your documents and a full application to confirm if you are eligible.

  • Aiden

    Hi, Just wondering how the limited guarantee amount is calculated? For example, if I had purchased a property of $665k. And I chose to only guarantee 20% of the purchased amount, which is $133k. How come the guarantor loan calculator shows the amount is $166,250, not $133k?

  • Good question Aiden! It’s because the lender needs the loan to be a maximum of 80% of the value of the security. For for a loan of $100,000 the lender would need $120,000 – $135,000 of security.
    There’s a full explanation somewhere on this page https://www.homeloanexperts.com.au/no-deposit-home-loans/guarantor-loans/