Guarantor home loan mortgage broker: What you need if you want to buy your property without a deposit and have a guarantor
A guarantor mortgage broker may be your answer if you are having trouble saving enough deposit to get a home loan. However, you will need to have parents that will be your guarantors and already have a property or other asset with enough equity that can be used as a security for your home loan.
Saving enough deposit is often the largest challenge for first home buyers especially in a housing market where the prices rising. In some Australian housing markets, like Sydney and Melbourne, the rate of property capital gains (price rises) can be faster than first home buyers are able to save a deposit. Once you have purchased the property, upgrading later on can often be easier because if you have purchased in a growing market and buying in a growing market the capital gains made on you original house can help offset the prices increases on the property that you are buying.
Getting a guarantor home loan can mean that you will be able to purchase a property without having the deposit, you may also be able to borrow some of the other costs associated with purchasing the property such as the stamp duty. Having a guarantor home loan can also mean that, if your guarantor has enough equity in their property that is being used as the security for your loan, you may not be required to pay for lenders mortgage insurance. This can be a saving of several thousands of dollars.
If you would like to inquire about a guarantor home loan contact us to find out your options.
There are other options for those that have saved up a small deposit (5% of the property price plus the other costs associated with buying the property – stamp duty, legal fees etc..). Some lenders will allow people to borrow 95% of the property value when they have lenders mortgage insurance, furthermore some lenders will allow the lenders mortgage insurance to be borrowed as part of the home loan. This may mean that you need to pay lenders mortgage insurance and the interest rate or fees may be more than if you do not need to borrow this way but if it means that you can buy a property before the price increases you may end up saving more anyway because you have paid less to buy the proproerty before it increased in value.
If you are in one of Australia’s property markets that is seeing rapid price growth like Sydney or Melbourne you may want to contact the Oak Laurel mortgage broker there to explore your options.