How do guarantor home loans work?
A guarantor home loan allows a borrower to use a family member’s property equity to support their home loan application. Instead of providing a large cash deposit, the guarantor offers a limited guarantee secured against their own property.This usually reduces the lender’s risk and can allow borrowers to avoid the lender's mortgage insurance.
However, it also creates legal responsibilities for the guarantor. To help explain the process clearly, we have published a detailed blog on our website covering how guarantor home loans work, lender requirements and the steps involved.
If you would like guidance with structuring a guarantor loan, you can book a call with our lending team.