Home Loan with a Guarantor: What Do I Need to Know?
Lenders seek to ensure that all mortgages issued will see complete repayment by the end of the loan term. First-time homebuyers have the toughest time qualifying for a mortgage. They have little to no credit or employment history. Parents can help their children become homeowners by backing the home loan with their property or as a guarantor.
A home loan with a guarantor helps first-time homebuyers become homeowners. Guarantors also come in handy for other situations such as loans for investors and owner-builders.
Guarantors agree to become responsible for the debt if the homeowners fail to repay it. To qualify as a guarantor, the individuals must pass parameters set by the lenders. Property owners are the best guarantors. If something goes wrong with the repayments, the lenders have the home at their disposal. Plus, the guarantor puts their property on the line too.
Mortgage House is among the lenders that issue home loans with guarantors. Our loan specialists use proprietary tools to evaluate applications efficiently. Then, they search for the best loan terms for most clients.
We also offer several resources online that help homebuyers prepare for the application process. Check out our Mortgage House home loan calculator for free and with no strings attached.
Home Loan with a Guarantor Conclusion
A home loan with a guarantor is a great way for a first-time homebuyer to become a homeowner. Since the guarantor puts their financial viability behind the mortgage, the lender can provide more favourable terms. To start the process, contact our loan specialists today.