The prices in Australia are spiking up like never before in recent years, which is why purchasing homes, paying for rent, or saving up a deposit has become more daunting than ever. If you look into the numbers, you’ll find it challenging to acquire a sizable 20% deposit for first-time buyers as the median house price in capital cities is more than ever. If you’re struggling to meet the costs and are looking for alternative options to enter the current market, acquiring family guarantee home loans offers the best solutions.
You can assign anyone, preferably close relatives, to act as a guarantor for those who need additional security in your home loan. It caters to first-time home buyers who can meet other required payments but have little to no deposit as the guarantor will provide a portion of the equity in their property to secure your loan.
To that end, family guarantee home loans works by providing the following:
As mentioned above, lenders generally prefer immediate family members to act as the borrower’s guarantor for family guarantee home loans. This includes parents, spouses, siblings, and even parents-in-law, step parents, grandparents, aunts, and uncles. However this differs from lender to lender and should the guarantor not be your immediate parents or siblings, stricter policy applies.
Lenders are strict regarding family guarantee home loans, so keep in mind that there are specific requirements necessary before your application is subject under approval. This is to ensure that the guarantors understand the weight of their obligations, as well as to protect them from suffering from costly consequences in the unfortunate event that you fail to meet the payments.
With that in mind, borrowers must provide the following:
Guarantors, on the other, must provide the following evidence:
If you want the loan to run smoothly, you have to take the time to prepare all the necessary documents to ensure that you and your guarantor will meet all the strict lending criteria.
Having a trust-worthy family member act as a guarantor for your home loan is an excellent way of purchasing a property faster. It also steers away borrowers from paying Lenders Mortgage Insurance, while your relatives themselves don’t have to pitch in their funds in the process.
However, utilising family guarantee home loans is a decision that both parties cannot take lightly. If anything were to go wrong, the guarantor could suffer a significant financial burden as a part of their property is on the line. That’s why it’s essential to take the time to consider all possibilities before concluding.
If you’re looking for family guarantee home loans in Australia, engage the services of a mortgage broker at Highline Lending to aid you through this process from start to finish. We’ll take a look at your financial position and put a plan in place to ensure your home loan gets approved in the most beneficial way for yourself. Contact us on 02 8530 1107 or submit your scenario online.
We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
We get paid a commission from our lenders as a result of introducing your business to them. Subsequently, our service is at no cost to you. Our commission does not affect your interest rate whatsoever, if anything, we’re in a position to get you a lower interest rate than the general public due to our relationships with our banks
With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution
Whether you’re a first home buyer looking at entering the market or an existing home owner looking at ways to save money on your home loan, we have you covered. We’ve put hundreds of hours of research into these guides to ensure you end up ahead, and it’s completely on the house.
The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
When you have a mortgage that you have to pay off, you also have two ways of dealing with it.
The most common and simple one is, obviously, paying it off as soon as you can and never have to deal with it again. It goes without saying why most people out there that have taken a home loan prefer paying off their mortgage on time or even quicker.
As you may know, a trust structure comes with tax advantages and asset protection for investment properties and not only. However, it is known that many lenders don’t actually know how a structure trust loan works – and this may result in you, the borrower, missing out on certain tax advantages and potentially wasting your time with the wrong lender.
When you decide to purchase property in Australia – whether you are a foreigner or an Australian – you must be aware of the fact that there are a few aspects you should consider. After all, if purchasing property was an easy thing to do, we’d all do it and never look back.
As we all know, saving money for a deposit can be quite difficult, especially when we are in a tough spot. Moreover, if you want to use that deposit in order to get a home loan and fulfill your dream, things are probably going to get more stressful for you in no time.
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
What you need to know before you purchase your first property and how to fast track it. We have designed this guide to get you up to date with everything you need to know about being a first home buyer. Whether you have a short term goal of purchasing your first property or are thinking about it sometime later down the track, this guide will cover important essential aspects of this exciting journey.
What the banks won’t tell you and how to save serious money on your home loan. By Investing 10 minutes of your time to read through our guide, not only will you learn the tips and tricks the banks won’t always tell you to assist you with paying off your home loan sooner, but also gain an insight into some techniques that will allow you to minimise the interest you pay to the bank.
The best way to take control of your finances is to use a budget planner. This is a simple tool that helps you understand the money going in and out of your household. With our Highline Lending Budget Planner, we’ve got you covered. This handy tool allows you to log and track your goals, track your savings, track your debt and expenses and keep a monthly record for an end of year evaluation.
