Guarantor Loans
Family-supported lending structures that may help eligible buyers purchase sooner.
Family-supported lending structures that may help eligible buyers purchase sooner.
Aspect Financial Solutions helps you understand the lender requirements, documentation, structure and approval pathway before lodging an application.
Guarantor home loans
A guarantor loan may help eligible borrowers purchase sooner by using a family member’s property equity as additional security. This can reduce deposit pressure and may help avoid or reduce Lenders Mortgage Insurance.
Potential benefits
- Borrow with a smaller deposit.
- Potentially avoid or reduce LMI.
- Enter the property market sooner.
- Limit the guarantee to a specific portion where the lender allows.
- Release the guarantor once enough equity is built.
Important risks
The guarantor takes on real financial risk. If the borrower defaults and the property sale does not clear the debt, the lender may seek recovery from the guarantor up to the guarantee amount.
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