The St George Family Pledge Home Loan was one of the first guarantor loans available on the market. This loan enables the borrower to buy a home by using the property of a family member as the additional security.

Pricing / Discounts

St George’s Advantage Package and Basic Home Loan are both available with the Family Pledge feature. However, if the guarantor has a loan on their property that they are pledging as security, then the Advantage Package may not be available. This is because the Advantage Package is not available with a second mortgage.

Lending Policy

In some cases elderly / pensioner guarantors are accepted for a Family Pledge loan. In most other aspects the bank is relatively conservative. Generally St George prefers that the guarantors are the parents of the borrowers. They believe that parents know their children well and would only accept this loan structure if they know their children are responsible enough to take on the commitment.

Home Loan Features

• Basic Loan
  • Redraw
  • No ongoing fees
  • Low variable rate
  • Internet banking
  • Interest only is available
• Advantage Package
  • Redraw
  • Annual fee is payable
  • Discounts on other bank products such as cheque accounts and credit cards
  • 100% offset account
  • Low variable rate
  • Internet banking
  • Interest only is available

Disadvantages

The main disadvantages with the Family Pledge loan are:

• If the guarantor already has a loan on their property you may not get the best possible discount.
• If the guarantor has a loan on their property then St George will be very conservative in their assessment.
• Overall the bank’s lending policies are very restrictive for people buying in remote locations and people with unconventional employment.

Which family members can be guarantors?

Banks do not allow every family member to be a guarantor for your loan. Ideally your parents should be the guarantors for your loan. If you are using a grandparent, aunt, uncle, sibling, stepmother or stepfather then many lenders will not accept your application.

Your guarantors will be required to seek independent legal advice prior to signing the loan agreement, no matter their relation to you.

Find out more

Enquire online to talk to one of our mortgage brokers that can help you compare this loan to the other guarantor home loans available. For most loans we charge no fees, offer the same loans that are available from the banks and can help you to protect the guarantor.