It is not easy to get a guarantor home loan with zero deposit. The reasons are not difficult to understand. A loan that is up to 100% value of the asset or house poses a huge risk for the lender. More so when there is also no mortgage insurance to pay for the losses, if the borrower defaults.
The good news is that with a credible guarantor, good credit history, repayment capacity, and the advice of a well-connected loan broker, you can obtain a guarantor home loan with a lower or zero deposit. Below is the list of the guarantor loan requirements and the eligibility criteria:
● Your yearly income (guarantor’s income may be added in some cases)
● Guarantor’s age
● Credit history (self and guarantor)
● Capital equity or value of guarantor’s property
● First or second mortgage on guarantor’s property
Guarantor Home Loan Calculator – Loan Amount You Can Apply for With a Guarantor
A common question most borrowers have is how much you can borrow with a guarantor loan. There is a difference between two borrowers based on their repayment capacity and the capital equity of their guarantor. There is also a difference between different lenders and the amount they are willing to lend.
In general, this is how much you can borrow:
● If you are an investor, you can borrow up to 105% of the purchase value of the property.
● If you are refinancing, you can borrow up to 100% of the purchase value of the property.
● If you are purchasing a house and also want to consolidate your existing debt, you can borrow up to 110% of the purchase value of the property.
● If you are constructing, you can borrow up to 105% of the land value and the cost of construction of the property.
Please note that the percentage amount varies. It is best to get the opinion and advice of an expert home loan broker with Local Finance Guru, before applying.
Guarantor Eligibility – Who can be a Guarantor of your Home Loan?
While there are many types of guarantors, if you are a first-time home buyer, then the best and ideal guarantor for you will be your parent or a family member. While parents are easily approved as guarantors, in the case of a sibling, grandparent, or another close relative, the lenders review the application on a case-to-case basis.
There are also various types of guarantees that the guarantor can offer, such as:
Servicing and security:
If you have a lower income and want to buy your first house, your parent’s property and their income can be used as a security guarantee for your loan. However, for servicing guarantee, you can only use the spousal, and not your parents’ guarantee.
Security or property guarantee (self):
The borrower can use the property that they own as a guarantee for the loan that they are taking. You can use this option if you do not have the deposit for the loan but have a good credit history.
Limited liability or guarantee:
This type of guarantee is very common and applies to most guarantees, including the one offered by your parents. In such cases, the scope of guarantee is limited to a portion and not the entire loan amount.
Why Pick Local Finance Guru for a No-Deposit Guarantor Home Loan?
Applying for a home loan is a complicated process. More so if you want to apply for a low-deposit or no-deposit guarantor loan. Local Finance Guru is the leading specialist in all types of home loans.
Speak to our home loan experts and we will help you apply for and obtain a low-interest home loan. Our transparency, high success rate, and impeccable service record have made us one of the top home loan brokers in Sydney.
Call us now on 0430 411 466 to talk to our no-deposit guarantor home loan expert and your dream of your own home can become a reality. You can also write to us at email@example.com for additional information. Contact us today!