Can I use a guarantor for my loan?

Using a guarantor can assist in reducing the deposit you need and avoid the need for Lender’s Mortgage Insurance. The guarantor offers their property as additional security to the loan – in most instances the guarantee can be limited – but it will depend on the equity they have in their property.

Generally the guarantor is limited to direct family however some lenders don’t impose a ‘relation’ requirement. Note that you will need to be able to service the entire loan in your own right – the guarantor’s income cannot help to pay the loan. Using a guarantor doesn’t eliminate the First Home Owner’s Grant (if you were eligible) as their name is not on the title of the purchase property

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