Guarantor Loans

Guarantor Home Loans

Guarantor Home Loans can allow you to borrow between 100% and 110% of the purchase price of your chosen home, subject to approval. This type of loan can be used in conjunction with other types of loans such as First Home Buyer Loans, Construction Loans, Mortgage Refinancing, Debt Consolidation, and Investment Loans. Basically, there is no limit in the loan amount, but if you want to borrow more than $1 Million, lenders may apply additional criteria.

Most lenders do not allow second home buyers to add a guarantor for their loan as they are expecting that the borrower should have already established enough equity in current assets to purchase a property without guarantor support. This can be unfair for people who have struggled with their finances and had to sell their previous home. Express Mortgage Market can help you find lenders who allow guarantors for second home buyers.

What is the Role of a Home Loan Guarantor?

Your ‘home loan guarantor’ will provide a guarantee for your loan that is linked to their property. In most cases, guarantors are parents who are helping their kids purchase their first home. Many Australians are using this strategy so they can get into the property market now, and benefit from future potential capital gains. The guarantor can later request to remove the guarantee if you have paid off the loan in full, or if your property has increased in sufficient value to bring the loan to value ratio (LVR) down to within normally accepted parameters.

What Are the Benefits of Guarantor Home Loans?

Guarantor loans are becoming more popular in Australia, mainly because of the benefits that borrowers may take advantage such as:

  • No deposit needed, which may allow you to purchase your home more sooner
  • Cost savings from not having to pay Lender’s Mortgage Insurance (LMI)
  • Discounted interest rates from some lenders
  • Minor debt consolidation is allowed so you can also pay small debts such as credit cards
  • Defined limit on the size of the guarantee (some lenders only)

For further inquiries on guarantor home loans or to set an appointment with a personal home loan broker Sydney, Call Express Mortgage Market on