Guarantor Home Loans

Struggling to save enough deposit?
Have you been saving for what feels like forever, but with rising living costs and increasing rent, it seems like you're still far from reaching the deposit needed for your new property? There’s another option you may be able to consider: a Guarantor Home Loan. A Guarantor Home Loan allows you to borrow more than you might be able to on your own by having a property owner (a direct family member with equity in their property) act as a guarantor. They offer the equity in their property as security, which could allow you to secure a loan with little to no deposit saved. This is helping many first-time homebuyers meet lender requirements and get into the property market much faster, without the need to save a traditional 20% deposit. Some lenders even offer flexibility in how much of the loan your guarantor needs to secure, which can reduce the level of commitment required from them.
As a guarantor, the individual agrees to cover the home loan if you're unable to meet your repayment obligations. Guarantors are interviewed separately from the borrower to ensure no financial abuse is taking place. They also have a minimum of three days to review and consider their responsibilities before signing any agreements. It’s important to note that being a guarantor has potential financial risks, so seeking legal advice before proceeding is highly recommended. Typically, a guarantor stays on the loan for 2-5 years. The best time to release a guarantor is when the loan balance falls below 80% of the property’s value, which can help eliminate Lenders Mortgage Insurance (LMI) and possibly lead to better interest rates. For a guarantor to be released, the borrower must demonstrate a consistent history of on-time repayments for at least six months, maintain an LVR (Loan-to-Value Ratio) below 80-90%, and meet the lender’s credit and financial criteria. It’s important to know that releasing a guarantor isn’t automatic—it requires an application, often involving refinancing. In cases where the LVR is still above 80%, LMI costs may also apply. Considering if a Guarantor Home Loan is suitable for you? Please reach out using the form below.

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Important points for guarantors

01.
Engage legal advice before signing anything
I strongly recommend seeking independent legal advice if you're considering acting as a guarantor, even for family members. It's essential to ensure your assets and interests are fully protected.
02.
Request help if you feel forced to go guarantor
Financial abuse can happen in many situations. If you feel pressured into signing as a guarantor and don’t fully understand the implications, please reach out immediately for guidance.
03.
Ensure you understand what you're committing to
As a guarantor, you are agreeing to repay the home loan if the borrower is unable to meet their repayment obligations. It's crucial to seek legal advice before proceeding.
04.
Check the borrowers credit reports
Even if the borrower is a family member, it's important to assess their credit history and evaluate the risks involved before deciding to act as their guarantor.

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Kelly Bowles - The Wandering Broker Mobile: 0487 279 952 Email: info@thewanderingbroker.com.au Post: PO Box 7278 Loganholme QLD 4129 Disclaimer | Privacy Statement © Copyright 2025 The Wandering Broker all rights reserved.
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TWB CO PTY LTD trading as The Wandering Broker Australian Credit Representative Number: 555660 ABN: 97 238 027 627 ACN: 673 504 008 Kelly Bowles, trading as The Wandering Broker, is authorised as a Australian Credit Representative to engage in credit activities on behalf of Vow Financial Pty Ltd ABN 55 138 789 161 (Australian Credit Licence Number 390261).