Don’t put your property dreams on hold…

Struggling to save a deposit? With a guarantor loan you may be able to borrow up to 105% of your property’s purchase price.

If you have someone in your life who can act as guarantor, a third-party home loan could be the perfect option for you. And the great news is, we know from experience that many people can remove the guarantee in 3 – 5 years.

At Auspak Home Loans we have access to over thirty different lenders so you can rely on us to find the loan that’s the right fit for you – with the lowest possible rates.

What is a guarantor loan?

Guarantor loans could be the solution to get you into the property market. Guarantor loans work by providing additional security (usually home equity) from a third party – often a family member. The guarantor isn’t required to make any payments on your loan. But if you can no longer keep up your repayments, the lender will turn to the guarantor to make the repayments. This way, it’s possible to get a home loan even when you have a small deposit.

Many lenders allow a family member to help you to purchase a property by providing additional security. The person providing this assistance is known as a guarantor. This is different from being a co-applicant or co-signer.

A co-applicant is included on the loan and will be responsible for the entire loan until it’s repaid in full.

A guarantor, on the other hand, is linked to a loan by a guarantee. This guarantee can be released and the guarantor’s responsibility stopped without the loan being repaid in full. To use a guarantor, you must be able to service the entire loan on your income.

Does a guarantor need to secure the entire loan?

No, they don’t; some lenders will allow a limited guarantee.

A limited guarantee simply means the guarantor only needs to secure a part of the loan, rather than the entire amount. This will benefit the guarantor from unnecessary risks, as they won’t be liable for the entire loan.

Without a doubt, the best way to find the home loan solution that is right for you is to talk with one of the lending specialist at Auspak Home Loans. In a free, confidential consultation we can help you find a solution that is best fitted to your unique circumstances.

If you decide a guarantor home loan is something you’d like to explore, you can start the conversation with your family member.

We always recommend that anyone considering being a guarantor for a property loan should seek independent legal and financial advice before accepting the role.

And remember, if a Guarantor Loan isn’t for you, there are still plenty of other options to consider.