A security guarantee is a type of guarantee where the guarantor provides real estate as additional security for the borrower’s loan. it is typically used when a son or daughter is buying a home and they are using their parents home or investment property as additional security to enable them to borrow 100% of the purchase price.

The security guarantee can be in the form of a mortgage or second mortgage over the guarantor’s property. The guarantor isn’t required to make repayments on the loan unless the borrower is unable to do so.

This is by far the most common type of guarantor home loan, making up over 90% of the guarantor supported loans that we arrange.