Guarantor Loans
A family member's property can secure part of your deposit, so you can buy sooner.
Request a timeA 15-minute call with Marko, confirmed within one business day.
A guarantor loan lets a family member use the equity in their own home to secure part of your deposit, often enough to avoid Lenders Mortgage Insurance altogether, which can be worth tens of thousands of dollars on its own.
It's a real commitment for the guarantor, not a formality, so Marko walks both parties through exactly what's at stake and how the guarantee gets released once you've built enough equity of your own.
Most lenders will only secure the guarantee against a limited portion of the property, not the whole thing, and once your loan balance is below roughly 80% of your property's value, you can apply to have it released. The lender decides, and most will want a new valuation first. Marko sets a plan with you upfront for getting there.
"So friendly and easy to talk to, he was honest and transparent through the whole process. I couldn't be happier with the result."
Ethan SydenhamGoogle review
- Family guarantee structuringLimiting the guarantee to a defined portion of the property, not an open-ended exposure.
- LMI avoidanceUsing the guarantee to reach 80% LVR, which is usually where LMI stops applying.
- Guarantor release planningA clear plan for when the guarantee comes off, tracked against your loan balance and property value.
Good fit if
- You have a stable income but a small or no deposit
- A parent or family member owns their home outright, or close to it
- Everyone involved understands what's actually being secured
Worth knowing
- The guarantor is legally liable if repayments aren't met
- Not every lender structures the release the same way
Questions about guarantor loans
Who can be a guarantor?
Usually a parent, though some lenders accept other close family members. The guarantor normally needs equity in their own property and must understand the obligation they're taking on.
How much does the guarantee cover?
Typically the gap between your deposit and 80% of the property's value, limited to a set amount rather than the whole loan.
When does the guarantee come off?
Once your loan falls to around 80% of the property's value (through repayments, a rise in value, or both), you can apply to have it released. Some lenders will want a new valuation.
Does a guarantor loan avoid LMI?
In most cases, yes. Because the combined security keeps the loan at or under 80% of the property's value, Lenders Mortgage Insurance usually isn't required.
General information only. Lender policies vary and change. Marko confirms what applies to you on the first call.
Still not sure? Request a time and Marko will look at your situation.