Using a guarantor
Using a guarantor on a home loan can be an option for buyers who don’t have the full deposit saved. A guarantor is someone who provides extra security by ‘guaranteeing’ a portion of a loan - usually the deposit.
For the buyer, the benefits of using a guarantor include:
- Being able to buy a home sooner
- Saving on extra interest charged for low deposit home loans
- The potential to borrow more funds than may have been possible otherwise
- Eliminating the need to pay for Lender’s Mortgage Insurance
As each lender and every loan product will be different, it’s important to do your research and find the right deal to suit the needs of both borrower and guarantor.
Any questions on using a guarantor, please give us an obligation free call.