Guarantor home loans are now the only way to borrow 100% to 110% of a property’s purchase price in Australia.
After the global financial crisis, traditional no deposit home loans were withdrawn from the Australian market, leaving guarantor home loans as the only no deposit option.
With the help of a guarantor, many Australians are getting their foot into the property market sooner and realising their home ownership dreams.
Your guarantor will provide a guarantee for your home loan by using their property as security.
Once you have paid off part of your loan or your property has increased in value, you can apply to remove the guarantee.
Guarantor loans cost less than standard home loans because you can borrow up to 100% of the property value plus the costs of completing the purchase including stamp duty, mortgage set up costs and legal fees.
Of the other no deposit home loans available, guarantor home loans are the most popular for that reason.
Other benefits include:
Reducing the risk to your guarantor: Some lenders allow you to limit the size of the guarantee.
Avoiding Lenders Mortgage Insurance (LMI): Depending on the property price, you can save tens of thousands of dollars in upfront costs.
You may only need as little as $3,000 to buy a home!
A broker can be a one-stop-shop for your financing needs. Contact me today to find out more about how I can help you with a Guarantor Home Loan.
I hope you found this information interesting. Please feel free to contact me on 0403 336 160 or email at firstname.lastname@example.org