How Much Deposit Do I Need With a Guarantor?
A guarantor is a family member who puts up equity from their homes or properties as an additional cushion for a home loan and takes responsibility for the entire loan payment if the borrower does not follow through. You do not need a deposit with a guarantor because they are giving up equity in their homes.
In Australia, any resident older than 18 and younger than 65 can become a guarantor, but the guarantor’s property must be located in Australia to be accepted. If a guarantor would like to be removed from a loan that has not been paid out yet, they can simply contact the original lender to see if removal can be completed. Our Mortgage Borrowing Calculator can assist potential buyers with determining the loan amount they can receive.
As mentioned previously, a guarantor can take responsibility for a loan’s full payment if the original borrower is not following through on the agreed-upon payments, which can lead to a guarantor losing the equity that was put up with the original loan. Finding a guarantor can be a great help to first-time buyers with little to no credit or employment history. First-time buyers may not understand all of the technicalities when it comes to successfully purchasing a house, but not to worry, here at Mortgage House our professionals have specialized in assisting buyers with all necessary steps and components to ensure a smooth home buying process.
Guarantor Deposit Conclusion
When dealing with a guarantor, a deposit is not necessary. For additional assistance with your home buying journey, our professionals at Mortgage House are equipped to tackle any questions or concerns you may have.