When choosing a home loan, the rates, fees and features of the loan are all significant aspects of the loan. However, seeking a guarantor loan that is supported by a family guarantee, can be a far more involved process than just obtaining a regular home loan.

So what is it you should you look for? What terms and conditions are the most important? We’ve created this guide to help you choose the most appropriate loan for your situation.

Step 1: Who will approve your loan?

There isn’t much point finding the best loan on the market if your application ends up being declined! Did you know that many lenders do not accept:

• Guarantors that are pensioners.
• Guarantors that already have a loan on their property.
• Borrowers that have no savings (some lenders require evidence of savings, even for guarantor loans)
• Borrowers that have a low asset position or several unsecured debts such as credit cards or personal loans.
• Borrowers that are buying an investment property instead of a home to live in.

If you enquire online then one of our mortgage brokers can determine which lenders you qualify with.

Step 2: Who has the best guarantee conditions?

You wouldn’t want to apply for a loan only to find out that the guarantee cannot be limited. Finding out what the lender requires of the guarantor is a must before you enter into a loan contract.

Ideally you would also want to use a lender that will allow you to remove the guarantee when you owe 90% or less of the property value (LMI may apply). This would allow you to have the option of removing the guarantee earlier rather than later.

Step 3: Who has the lowest rate & fees?

Choosing a suitable loan is a matter of weighing up the interest rate, fees, terms and conditions and the features of the loan. Our loan selection software can weigh up all three areas of the loan and compare the cost over 30 years, automatically giving you a short list of appropriate lenders.

Contact a Mortgage Broker

Enquire online to speak to a mortgage broker that specialises in family guarantee lending. We’ll use our expertise to find you the best loan and help you limit the risk to your guarantor.