A security & serviceability guarantee is where the lender relies upon the security of a guarantor and their income to help the borrower get their loan approval.

This is often used when a student (over 18 yrs old) wishes to buy a property with the help of their parents. The parents can use their house as additional security and can use their income to make the repayments. In most cases the borrower will not lose their first home benefits, making this an ideal choice for first home buyers.

The guarantors must be closely related to the borrowers, must have an excellent financial position and must confirm that they are aware that they will be required to make the repayments on the loan. If these criteria are met then the borrower may be able to borrow up to 100% of the purchase price of the property they are buying.