The structure is very similar if your parents already have a home loan on their property.
The guarantee for your loan is secured using a second mortgage behind their current loan.
Only two or three lenders in Australia will accept no deposit investment loans supported by a guarantor.
We can assist you to buy one investment property however buying multiple investment properties is not normally accepted.
Many people wishing to buy a home have significant consumer debts such as credit cards and personal loans.
If you are in this situation then generally you will be able to consolidate debts as well as purchase a property as long as your total debts are no more than 5% – 10% of the purchase price.
The size of the limited guarantee is calculated as follows: For example if you are buying a property for 0,000 and are borrowing 5,000 to cover your expenses such as stamp duty then the calculation would be: (5,000 loan amount – (0.8 * 0,000 purchase price))/0.75 5,000/0.75 = A limited guarantee of 6,700 (rounded to the nearest 0) Is this all too complicated?
Just let our guarantor loan calculator figure it all out for you.
Your guarantor will provide a guarantee for your home loan which is secured on their property.Unfortunately these loan types are no longer available.With some lenders today the maximum that you can borrow now is 105% of the purchase price and 110% if you have debts to consolidate.Even though guarantor loans allow you to borrow 100% of the purchase price, many lenders still require you to have 5% of the purchase price in genuine savings.This is simply money that you have saved yourself although there are exceptions such as using paid rent as genuine savings.Once you have paid off part of your loan or your property has increased in value, then you can apply to remove the guarantee.