Finance Hub
Guarantor Loans
A guarantor loan lets a family member use their own equity to help you buy sooner. We introduce you to independent, licensed brokers who explain the arrangement so everyone understands it.
How a guarantee works
With a guarantor loan, a close family member — usually a parent — offers a portion of the equity in their own property as additional security. This can reduce or remove the need for a large deposit and may help you avoid lenders mortgage insurance.
The guarantor is not usually gifting money; they are providing security. Once your loan reaches a certain level, the guarantee can often be released.
Understanding the responsibility
Being a guarantor is a serious commitment. If repayments are not met, the guarantor's own property can be at risk to the extent of the guarantee. Everyone involved should understand this clearly and, in many cases, seek independent legal advice.
Our role
We introduce you to independent, licensed brokers who structure guarantor loans and explain the obligations. We do not provide credit or legal advice ourselves.
Related reading
- First home buyer mistakes — errors to avoid when family helps you into the market.
- How to buy your first home — the full first-purchase process from deposit to keys.
Frequently asked questions
Can the guarantee be removed later?
Often yes. As your equity grows, many lenders allow the guarantee to be released. Your broker can explain the conditions.
Does the guarantor need to give me cash?
Usually not. A guarantor typically provides security using their own property rather than handing over money, though every arrangement differs.