Considering a Family Guarantee Loan?

If you are looking to purchase your first home, or even your second, and wish to use your parents property to help you with the deposit, than a family guarantee loan may be for you.

The current housing climate has left it difficult for many first starters or hopeful property investors to branch out into the market. Moreover, coming out of a difficult financial period, the traditional parental support in the form of offering assistance with home deposits is becoming less and less common. Fortunately, families can still band their resources together in the form of parental guarantee home loans. This allows the bank to utilise a portion of the equity held in your parent’s property as additional security on a home loan.

What is involved with a parental guarantee home loan?

Whether you only have enough savings to pay for the stamp duty and legal costs associated with purchasing a property, or have no savings held at all and need to borrow the full amount of the house, your parents can offer a percentage of the property they own to use as guarantee for the bank. For example, if they own a $500 000 property, and owe $200,000 on it, then they could potentially provide $200 000 as a ‘deposit’. From there, they will need to sign official documents with a bank that allows parental guarantee home loans, and the mortgage will go in your name. Policies and conditions vary between financial institutions, so it’s always important to consult a reliable mortgage broker before moving forward.

We assist customers all across Australia.

Speak with our experts today for help securing home loans and more

At Bee Finance Savvy we help make things simple, helping get you into your property sooner.

We will also assess how much you can afford to borrow, from a variety of banks, and can match you with a lender that will require minimal paperwork from your parents or relative.

If you would like to learn more about parental guarantee home loans, or any of our other services available, including assistance with investment properties, please do not hesitate to contact a member of our friendly staff today. You can do so by calling 1300 140 554, sending an email to enquiries@beefinancesavvy.com.au, or by taking a moment to leave your details on our simple enquiry form found at the bottom of this page, and we will get back to you as soon as possible.

You may also enjoy some further reading here –

Is your deposit a gift from relatives?
Want to know how your family can help you buy your new home?

 

Contact Us Today to Discuss Family Guarantee Loans

© Copyright 2018 Bee Finance Savvy