Parents looking to be your guarantor?
Jayde and Jared were living with Jared’s parents whilst saving a deposit for their first home. But it soon became clear, saving a 20% deposit can take a long time, particularly in a hot market where property prices are rising.
Keen to bring their dream to reality quicker, Jayde and Jared consulted their trusted mortgage broker, Justin Purll.
Since they had enough income to meet the ongoing home loan repayments, but were short on the deposit, Justin suggested using a guarantor to give additional reassurance to a lender that their loan is safe and that they'll be able to recoup their money if Jayden and Jared ever defaulted on their repayments. It also meant they would avoid having to pay lenders mortgage insurance (LMI).
Jared asked his parents to be their guarantors. As guarantors, they used the equity in their own property as security for the loan on Jayden and Jared’s property.
The happy ending… Justin did all the legwork for their loan application, negotiated a competitive deal on their behalf and guided them through to settlement. Jayde and Jared (FHB) are now happily living in their new home!
Want to make your home buying dreams a reality? Get in touch with Justin today.