When To Consider A Family Equity Loan
There is no one way to buy property and knowing all the options out there can give you a greater sense of power over the process.
One option - which is becoming more common - is the family equity loan.
This can be just the type of home loan for someone looking to get out of the rental cycle and into the housing market.
A family equity loan - also known as a limited guarantor loan - enables a family member or your parents to help you purchase a home.
This can be beneficial solution for you and could offer you the helping hand you need to get onto the first rung of the property ladder.
Simply put, this sort of loan could be a great option if one of your family members wishes to offer their property as security for part of your home loan.
One of the best aspects of this home loan is that your family member does not have to actually hand over any cash.
Your guarantor can also choose exactly how much of the loan they want to secure, but usually it accounts for around 20 per cent.
To get more detailed information about your situation, talk to a Loan Market mortgage broker today.