Benefits of a Family Guarantee
Get into the market sooner
Depending on the status of your guarantor and your deposits, your savings requirements maybe a much smaller amount, so you can get your loan approved sooner and start enjlying your new home.
Guarantor status not fixed
As you progress through your loan repayments and build your own equity there is an opportunity to remove the guarantee application, which gives you independence without having to rely on someone else being liable.
Avoiding Lender’s Mortgage Insurance
By taking on a guarantor you can achieve the required 20% LVR required to avoid having LMI applied.
Increased lending options
Having a guarantor on board means you can increase your borrowing potential to 107% on the new property value without a deposit required.
No need for Genuine Savings
With a guarantor you don’t need to provide proof of 5% genuine saving
Lower Interest Rate
Since you have a lower LVR (i.e. below 80%) you can enjoy an optimum interest rate.