Question 1

How does a guarantor loan work?

Accepted Answer

A family member (usually a parent) uses equity in their home as security for part of your loan, reducing or removing the deposit you need and avoiding LMI.

Question 2

How much can a guarantor help with?

Accepted Answer

The guarantee usually covers the gap between your deposit and the 20% LMI threshold — often 10–20% of the purchase price.

Question 3

What are the risks for the guarantor?

Accepted Answer

The guarantor’s home is security for your loan. If you default, the lender can call on the guarantee. We explain the exposure clearly and structure limits to protect the guarantor.

Question 4

When is the guarantee released?

Accepted Answer

Once your loan-to-value ratio drops below the threshold (usually 80–90%), the lender releases the guarantee.

Question 5

Can a guarantor be released early?

Accepted Answer

Some lenders allow partial or early release if you refinance or the property value increases. We review the release options with you.

Guarantor home loans, without the guesswork.

Frequently Asked Questions