Guarantor loan
You've found the perfect home, but you don't have a 20% deposit. Your savings are limited. Your credit is good, but you can't save fast enough. Does this sound like you? If so, a guarantor loan could be your pathway into the property market. Buyvest mortgage brokers in Sydney specialise in guarantor loans and have helped hundreds of first home buyers and property investors access the housing market using a family guarantor when traditional loans weren't an option.
A guarantor loan uses your family member's property equity (usually a parent, sibling, or spouse) as security, letting you borrow more with a smaller deposit. Better yet, with a guarantor loan you can waive expensive Lenders' Mortgage Insurance (LMI) entirely - potentially saving you thousands of dollars. Whether you're a first home buyer struggling to save a deposit, or an investor looking to grow your property portfolio faster, this guide explains everything you need to know about guarantor loans and how our expert brokers can help you secure the best guarantor loan rates available.
Ready to apply for a guarantor loan with Buyvest?
Get your free guarantor loan assessment from Buyvest mortgage brokers and find out how we can help you access the property market with a guarantor.
Free Guarantor Loan AssessmentWhy use Buyvest mortgage brokers for guarantor loans?
Access to 35+ lenders
We work with banks, credit unions, and non-bank lenders. Different lenders have different guarantor loan criteria - we match you with the right one for your guarantor situation.
No cost to you
Lenders pay our commission directly. You pay the same rate whether you go to the bank directly or through us - but with expert guarantor loan guidance included.
Guarantor loan expertise
Our brokers specialise in guarantor loans and understand family guarantee requirements. We've helped hundreds of borrowers secure guarantor loans and waive LMI fees.
Family guidance & support
We guide both you and your guarantor through the entire guarantor loan process. We explain legal implications and ensure everyone understands their responsibilities.
LMI waiver access
With a guarantor, you may qualify to waive expensive Lenders Mortgage Insurance. We help you maximise your guarantor loan benefits and save thousands in fees.
Ongoing support
We stay involved throughout your guarantor loan application and settlement. We're available to discuss refinancing and future property opportunities after your guarantor loan completes.
Why choose Buyvest mortgage broker for your guarantor loan?
Own property sooner
Enter the property market sooner as a home owner or investor using a guarantor loan. A guarantor loan removes the barrier of needing a large deposit, letting you build wealth through property earlier.
Flexibility & affordability
Borrow more than you might otherwise be able to without guarantor help. With a guarantor loan, the amount offered as security can be the entire loan or less - your choice.
Waived LMI fees
With a guarantor loan, you may avoid paying expensive Lenders Mortgage Insurance or Low Deposit Premium. This can save you thousands of dollars on your guarantor loan.
Family members as guarantors
Your guarantor can be a parent, grandparent, sibling, spouse or guardian. A guarantor loan gives flexibility in who can help you secure the property you want.
Competitive home loan rates
We negotiate competitive rates by comparing guarantor loan options across multiple lenders. Often save clients thousands in interest on their guarantor loan.
Guarantor loan expertise
Our brokers specialise in guarantor loans and understand every aspect of family guarantor requirements. From equity assessment to legal documentation, we guide your guarantor loan.
Do I qualify for a guarantor loan?
Most lenders evaluate several factors to determine whether you qualify for a guarantor loan. Understanding these factors helps you prepare your guarantor loan application and increases your chances of approval.
Your Qualification Factors
- Your financial strength and borrowing capacity
- Your employment history and income stability
- Your credit history and credit score
- Existing debts and liabilities
- Deposit amount you can contribute
- Your savings and financial position
Guarantor Qualification Factors
- Your family's financial strength and stability
- The guarantor property's equity and value
- Any outstanding mortgage on the guarantor property
- The guarantor's credit score and history
- The guarantor's existing debts and liabilities
- The guarantor's ability to repay if you default
What makes a suitable guarantor for a guarantor loan?
Banks assess guarantor suitability based on whether the guarantor can repay your debt if you default. The type of property offered as collateral determines guarantor requirements. Understanding these requirements helps ensure your guarantor loan application succeeds.
Owner-Occupied Property as Security
- At least one guarantor must be working or self-funded
- Demonstrates ability to repay debt in event of your default
- Employment income required
- Guarantor's financial strength is heavily assessed
- Guarantor must show stable income and employment history
- Income documentation needed for guarantor loan approval
Investment Property as Security
- Banks more easily accept investment property as collateral
- Demonstrates guarantor is self-funded and financially strong
- Investment property income shows ability to service debt
- Shows business acumen and property investment experience
- Less stringent employment requirements for guarantor
- Property equity and investment income are key factors
Does the guarantor property have enough equity?
The amount you can borrow with a guarantor loan depends on the equity available in the guarantor property. Banks require a valuation report from an independent party to determine your guarantor loan's Loan-to-Value Ratio (LVR). If the sum of your guarantor's existing loan and your guarantor loan falls under 80% property LVR, the property has enough equity to secure the guarantor loan. Our Buyvest mortgage brokers will guide you through this assessment and compare guarantor loan options across 35+ lenders to find the best fit for your situation.
When to Use a Guarantor Loan
- When purchasing a high-value property
- When you cannot meet the 20% minimum deposit
- When you cannot afford stamp duty and closing costs
- When your parents are financially independent and willing
- When your family property is clear of major debt
- When you want to waive expensive LMI fees
Guarantor Loan Considerations
- Your guarantor is legally responsible if you default
- The guarantor's property becomes security for your loan
- The guarantor may not be able to access equity during the guarantor loan term
- LVR requirements may limit how much you can borrow
- Some lenders require guarantor financial advice
- Guarantor loan terms vary between lenders
Use our guarantor loan calculators
Understand your guarantor loan capacity and how much equity you need
How to apply for a guarantor loan with Buyvest
The guarantor loan process is straightforward when you work with Buyvest mortgage brokers. Here's how to get approved for your guarantor loan and enter the property market.
Discuss your guarantor loan goals and your guarantor's financial position with Buyvest. We help you assess whether a guarantor loan suits your situation and prepare for the guarantor loan application. Our brokers provide expert guidance on guarantor loan options available.
We review your guarantor loan documents and compare options across multiple lenders. Buyvest explains your guarantor loan choices so you and your guarantor make the right call. We submit your guarantor loan application to the best lenders for your guarantor situation.
Once approved for your guarantor loan, we coordinate with your guarantor, lender and legal advisors. We ensure smooth guarantor loan settlement and provide ongoing support. Get your guarantor loan approved and move forward with confidence.
Documents needed for a guarantor loan application
Have these ready to streamline your guarantor loan approval process. Most guarantor loan documents can be obtained from your guarantor or your bank.
Personal identification
Australian passport or driver's license (with photo, full name, DOB, current address) for both borrower and guarantor. We keep everything secure and confidential.
Proof of income
Two recent payslips from current employer, or 2 years' tax returns if self-employed. For guarantor loan applications, required for both borrower and guarantor.
Financial statements
Latest bank statements (3 months), savings account statements for both borrower and guarantor. Shows current financial position for guarantor loan assessment.
Guarantor property details
Title deed or property ownership documents for the guarantor property. Latest council rates notice. Property valuation report for guarantor loan security assessment.
Existing debt information
Mortgage statements for the guarantor property showing existing loans. Credit card and personal loan statements. Needed for guarantor loan LVR calculation.
Rates & insurance
Council rates notice and building insurance documents to verify property ownership and insurance coverage for the guarantor property.
Buyvest guarantor loan brokers serving Sydney & Australia
Buyvest mortgage brokers help home buyers across Sydney and Australia secure guarantor loans. Whether you need a guarantor loan for your first home or investment property, our guarantor loan brokers are here to help you access the best guarantor loan rates and terms available.
Ryde area suburbs
Greater Sydney regions
Regional NSW
Australia wide
Buyvest guarantor loan brokers also assist home buyers across Australia. Contact Buyvest to discuss your guarantor loan and how our brokers can help you access guarantor loan finance.
Ready to apply for a guarantor loan with Buyvest?
Our expert team of guarantor loan brokers is ready to guide you through every step of the guarantor loan process.
Free Guarantor Loan Assessment