Could Family Equity Help You Buy A House?
Coming up with the finances to secure home loans might feel like a bit of a riddle at times.
In particular, if you’re having trouble saving for a deposit on a house, it might seem like the answer is nowhere to be found.
Well riddle me this, dear reader. How is equity like charity?
No, they’re not something given away for free, but they can both begin at home!
Well, especially in the case of family equity they can. This is a feature of lending products that allows a family member to guarantee a portion of your home loan.
This can have many benefits for the home buyer.
It can enable you to buy a property sooner, increase your borrowing capacity and avoid having to pay lenders mortgage insurance.
It is common for parents to help their children to buy property using family equity.
They do this by providing their own property as security. The guarantor can then specify how much of the loan they wish to secure.
By taking advantage of family equity, you may be able to achieve homeownership or start investing in property more easily.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.