Guarantor Home Loan
A guarantor home loan allows a family member, usually a parent, to use the equity in their property to help you buy a home with no deposit and no Lenders Mortgage Insurance (LMI). You could borrow up to 105% of the purchase price, covering stamp duty and other costs too.
The guarantor doesn't contribute cash, they simply offer their property as additional security until you've built enough equity to stand alone. The guarantee can typically be removed within 3–7 years.
105%
Max LVR (incl. costs)
$0
LMI payable
0%
Deposit required*
80%
LVR to release guarantee
Key benefits of a guarantor home loan
Ideal for first home buyers who have steady income and employment but haven't yet saved a 20% deposit.
Avoid LMI entirely
Lenders Mortgage Insurance can cost $10,000–$30,000 on a typical purchase. A guarantor eliminates this cost completely.
Buy sooner
Don't spend years saving a 20% deposit in a rising market. A guarantor lets you enter the property market now, while prices and rates allow.
Limited guarantee structure
The guarantee can be limited to a specific portion of the loan, protecting the guarantor from full liability. Most lenders offer this structure.
How a guarantor home loan works
A straightforward 5-step process managed by your Secure Finance broker from start to settlement.
Assess your situation
We review your income, savings and borrowing capacity to confirm whether a guarantor loan is your best path forward.
Identify your guarantor
Discuss the arrangement with your chosen family member. We'll explain the process, risks and responsibilities clearly to everyone involved.
Guarantor assessment
The lender assesses the guarantor's property equity and financial position. We manage this process on your behalf.
Independent legal advice
The guarantor must receive independent legal and financial advice (lender requirement). We'll help coordinate this step.
Settlement & loan management
Your loan settles, you own your home, and we help you plan to build equity so the guarantee can be released as soon as possible.
Important: Independent advice is mandatory
All guarantors are required by Australian lenders to seek independent legal and financial advice before signing any guarantee documents. This protects both parties. Secure Finance can refer you to qualified independent advisers as part of your application process.
Free guarantor loan assessment
We assess your situation, explain the guarantor process to your family, and find the right lender structure for your needs, at no cost.
- ✓No deposit required with eligible guarantor
- ✓Eliminate LMI, save $10,000–$30,000+
- ✓Borrow up to 105% to cover stamp duty and costs
- ✓Plan for guarantor release within a few years
- ✓FBAA-accredited broker guidance throughout
Guarantor loan FAQs
Everything you and your family need to know about guarantor home loans in Australia.
Get into your first home with family support
A guarantor loan could be your fastest path to homeownership. Talk to one of our brokers today, it's free and there's no obligation.
*Subject to lender assessment and guarantor eligibility. Independent legal and financial advice required for guarantors.
Keep reading about Guarantor Loans
Guides from our Knowledge Hub to help you weigh up your options.
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