Buying your first home in Queensland can feel like a big leap, especially with rising property prices. One way to make the dream more achievable is by using a family guarantee.
This option allows a close family member – often a parent – to use the equity in their own home as security for part of your loan, reducing the need for a large deposit.
The big advantage? You may be able to avoid paying lenders mortgage insurance and borrow up to 100 per cent of the property’s value. This can get you into your home sooner, even if you haven’t saved the traditional 20 per cent deposit.
Your guarantor isn’t giving you money – they’re simply offering extra security for the bank. As you pay down your loan, the guarantee can eventually be released.
It’s important for everyone involved to seek independent legal and financial advice. Here at TSC Mortgage Brokers, we see a lot of first homebuyers enter the market this way.
For many Queenslanders, a family guarantee is a smart, supportive way to step onto the property ladder with help from those who love you most.
Matt Punter, Director, Punters Finance and TSC Mortgage Brokers, puntersfinance.com.au and thesavingscentre.com.au
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