This means you will not need a traditional deposit for a purchase, although some lenders do like to see a savings pattern or a rental ledger to demonstrate your ability to save or make regular payments.

The load is generally set up as an 80/20 split with 20% of the loan against the guarantor’s property and 80% against the property being purchased. This means that the parents’ home is only carrying a debt of 20% of the value of the new home being purchased.

In time, your property will increase in value and you will have paid off some of the debt and you can have the guarantee removed. Renovating the home you purchased can assist in increasing the value and speeding up the process.

For more information on family guarantee loans, call me on 0402 203 303 or email me at rob@rwfs.com.au.