Guarantor Home Loans

What is it?


If you’re struggling to meet the strict home loan approval criteria of lenders, a guarantor home loan could be a good option to get you into your home sooner.

A guarantor is a person who agrees to become legally responsible for your home loan repayments if you can’t afford to make them. It’s usually a family member (like your Mum, Dad, or both) who can meet the lender’s approval criteria. A guarantor lower the lender’s risk, so they increase your changes of getting a home loan approved.

Purchase Sooner with A Guarantor

More details

Why might you need a guarantor home loan?

A guarantor loan might be suitable if:

  • you’re a first home buyer and you can’t raise a high enough deposit, or
  • you have a deposit (less than 20%) and want to avoid paying Lenders Mortgage Insurance (LMI).

What are the benefits of guarantor home loans?

Besides helping you to get a home loan approval that you may not be able to get on your own, a guarantor can help you to:

  • borrow more.
  • avoid the cost of lenders’ mortgage insurance (LMI). This can save you more than $10,000 on an average-sized home loan.

How much Can I Buy For?

You can purchase a brand new house, vacant land and build or an established house under the First Home Guarantee. You will need to ensure that the property is sold for less than the property price cap set for your area. To find out the exact property price cap for your area, please contact us and one of our specialists will assist you. 

When Can I Release The Guarantor?

You can arrange for the guarantor to be removed once you have built up you lever of equity in the house. This is usually once the loan amount is less than 20% of the value of the house. This is also know as your Loan to Value Ratio (LVR). Our team can assist you in working this out when required. 

What Will My Home Loan Repayments Be?

This depends on how much you borrow, your loan term and the comparison interest rate. Standard loan terms in Australia are 25 and 30 years. You can use our Wisebuy Home Loans loan repayment calculator to help you work out your repayments of different loan amounts over different terms and at different interest rates.

Are There Any Other First Home Buyer Concessions?

Yes. For example, eligible first home buyers in New South Wales receive a transfer (stamp) duty concession. It could save you thousands of dollars when you buy your first home. You can use our Wisebuy Home Loans stamp duty calculator to work out if you’re eligible for a full or partial concession.

Are there any other options?

Yes, you may not need a home loan guarantor if you’re eligible for the federal government’s First Home Guarantee or the Family Home Guarantee Schemes.

Our expert team at Wisebuy Home Loans work with a diverse range of lenders who provide guarantor home loans. We arrange home loans for a living and we can help you to find the right loan for your needs. Importantly, we work for our home loan borrowers, not for lenders.

We can guide you every step of the way, right from helping you organise a home loan pre-approval so you can negotiate and buy with confidence, through to taking ownership and moving into your new home.

Contact us to arrange a free, no-obligation consultation with a Newcastle Mortgage Broker Professional. We’d be happy to answer any questions you have.