Get Into the Property Market with a Guarantor Home Loan

Looking to enter the property market but struggling to secure a home? A guarantor home loan can provide the support needed by using a close family member’s property equity as security.

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A Pathway to Ownership, Sooner: Guarantor Home Loans Explained

How It Works

A guarantor home loan, often called a family guarantee, is a powerful way to enter the property market without having to save a full 20% deposit. It allows a close family member, typically a parent, grandparent or sibling, to use the equity in their own home as additional security for your home loan.

Instead of giving you cash, the guarantor provides a limited guarantee that usually covers around 20% of the property’s value. This gives the lender the security they need to lend you up to 100% of the purchase price.

This means you may:

Buy your home sooner.
Avoid the significant cost of Lenders Mortgage Insurance (LMI).
Get into the market without a full 20% deposit.

Reach out to us and we can guide you through any initial questions.

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Guarantor Loans: Understanding the Guarantor's Role and Risks

Acting as a guarantor is a major financial decision and a significant act of generosity. It’s crucial to understand that this commitment comes with substantial legal and financial risks. By providing a guarantee, you may become legally responsible for repaying the guaranteed portion of the loan if the borrower is unable to meet their repayments.

In a worst-case scenario where the borrower defaults and you are also unable to cover the repayments, the lender could take action to sell your property to recover the debt. It is a commitment that should not be entered into lightly.

It is important to chat to a qualified expert to understand this process entirely. At Hayes Financial, we’re here to help.

Structuring the Guarantor Loan Correctly

Our primary goal with any guarantor home loan is to protect the interests of both the borrower and the guarantor. We structure these loans with a clear strategy to release the guarantor from their obligation as quickly as possible.

This is typically achieved once the borrower has built sufficient equity in their own property, either through making repayments or through capital growth. Once the loan-to-value ratio (LVR) falls below 80%, we can proactively work with you to refinance the loan and remove the guarantee entirely. This responsible approach ensures the guarantee is a temporary stepping stone to homeownership, not a lifelong burden.

The Hayes Financial Advantage

Choosing the right mortgage broker can save you time, money, and significant stress. We combine deep industry expertise with a genuinely personal approach, managing every detail of the process so you can focus on your next chapter. We listen carefully, research tirelessly, and negotiate fiercely on your behalf to deliver a seamless experience and an exceptional outcome.

Get in touch

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Opt for a chat, email, or a brief message, we’re ready to connect and offer any help or personalised assistance you require.

Email: hello@hayesfinancialgroup.com.au

Phone: 0432 189 047

Address: 25 Murray Cres, Griffith ACT 2603