With property prices continuing to rise getting help jumping into the property market is sometimes needed especially for first home buyers, but what are your options?

Family Pledge/Family Guarantee

When it comes to a family pledge or family guarantee home loan it is where you can borrow up to 110% of the prospective property value by asking your family (Mum & Dad, grandparents etc) to guarantee the home loan by using their own home as security on your mortgage.
This means they don’t need to go on the title with you, your guarantor doesn’t “own” the home with you. It does however mean you are solely responsible to pay the loan back. 
First home owners often like this choice as once they have established good payment history and their property price has gone up in value they can often refinance their home and take their family pledge off the loan in a few short years.
Even though these loans are often referred to as Parental Guarantees, it can be any family member that is able and willing to assist. Banks/lenders often prefer the guarantor to be a close relative – and is usually a parent, grandparent or siblings.

Before entering into these home loans it is a requirement that the guarantor gets independent legal advice to ensure they are aware of their obligations.

Your family guarantor doesn’t need to provide any cash, deposit or payments. No money changes hands with a a family guarantee.

Keep in mind, that these loans are generally if you intend to occupy the home you are planning on buying as family guarantees are generally not available for investment properties.

Let us help you get into your own home.


Contact our AWARD winning office to discuss your options 4040 0910.