Is your family willing to help you buy your first home or investment property? The Family Support Home Loan can allow you to borrow up to 100% of the purchase price or more without the need for any proof of savings. A member of your immediate family such as your parents or a sibling can go guarantor for your loan by putting their house up as additional security for the bank.

Pricing / Discounts

CBA offers their basic home loan and professional package discounts for Family Support loans while ING offers their Mortgage Simplifier basic loan. Each lender has their own discounts for guarantor loans and so we recommend that you enquire online to speak to one of our brokers who can compare them in detail for you.

• 3 Year Special Rate Saver Home Loan (CBA Basic Loan): Ideal if you are borrowing under $350,000 or if you want to keep your existing cheque account with another financial institution.
• Wealth Package / MAV Package (CBA Professional Package): This loan is better suited to those of you who are borrowing over $350,000 and who want to get discounts on a range of bank products including cheque accounts, credit cards and insurance.
• Mortgage Simplifier (ING Basic Loan): This loan is well suited to anyone borrowing less than $300,000 or for anyone that wants a simple home loan package without any of the bells and whistles. If you borrow more than $300,000 then you can take advantage of ING’s Smart Pack interest rate discount for a once off package fee.

Lending Policy

CBA is less conservative than most lenders with their policy for guarantor supported home loans. The main issue that borrowers face when applying for a family equity loan is that their application is credit scored by the bank. They can consider lending more than 100% of the property value for strong applicants.

ING tends to be more conservative than most lenders and requires your guarantors to prove that they have a good income. Although ING will consider using the guarantors income to help the borrower repay the loan. However, ING does not automatically limit the guarantee amount therefore we specifically request this at the loan application stage.

Home Loan Features

• 3 Year Special Rate Saver Home Loan (CBA)
  • Redraw (fees apply)
  • No ongoing fees
  • Low variable rate (introductory rate for the first 3 years)
  • Internet banking
  • Interest only is available (no redraw is available on interest only loans)
• Wealth Package / MAV Package (CBA)
  • Redraw
  • Annual fee is payable
  • Discounts on other bank products such as cheque accounts and credit cards
  • 100% offset account (limited transactions)
  • Low variable rate
  • Internet banking
  • Interest only is available
• Mortgage Simplifier Home Loan (ING)
  • Low variable rate
  • Fee free redraw
  • Internet banking
  • Interest only or principal and interest repayments
  • The highest customer satisfaction rating of any Australian bank

The guarantee can be limited with all three loan types. CBA prefers to split the loan into two parts to allow one to be secured on the new property being purchased while the other is secured by the family member’s property and the new property. ING prefers to have one loan account with a limit to the guarantee specified in the loan agreement.

Disadvantages

The main disadvantages of the Family Support loans offered by CBA are:

• Your application will be credit scored.
• You must have a good asset position.
• CBA prefers not to deal with elderly guarantors using their home as security for the guarantee.
• Their professional package is not as competitive as other loans available.

The main disadvantages of the Family Support loan offered by ING are:

• ING’s lending policy is more conservative than most lenders.
• The guarantors must have a good income.
• The guarantors will need to prove their income, requiring you to provide additional paperwork.
• ING will not automatically limit the guarantee, you must request this at the time you apply for your loan.
• Second mortgages are not available as security for the guarantee.

If this may cause a problem for you then talk to us and we will show you what other guarantor loans are available from other lenders.

Find out more

Enquire online to talk to one of our mortgage brokers to see if the Family Support loan is suitable for you. For most loans we charge no fees, offer the same loans available from the banks and can help you to protect the guarantor.