Guarantor and family guarantee
A guarantor, usually a parent, offers their own property as additional security, which can let a buyer borrow with a small deposit without paying lenders mortgage insurance.
Guarantor and family guarantee, explained.
A family guarantee may be limited to part of the loan; the guarantor's exposure and release depend on the guarantee terms and the lender's agreement.
A guarantee is a real liability. The guarantor's property can be called on if the borrower defaults, lenders may require the guarantor to obtain their own legal advice, and the guarantee can affect the guarantor's own borrowing.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
