Guarantor home loans
A parent can put up part of their home in place of your deposit. It helps, and it puts their property on the line.
How a family guarantee works
A guarantor, usually a parent, lets the lender take a limited mortgage over their property. That extra security covers the part of your deposit you don’t have, so the lender treats the loan as if you had 20% and no lenders mortgage insurance is charged. You still borrow the money and make every repayment.
What the guarantor is agreeing to
If you stop paying and the sale of your home doesn’t clear the debt, the lender can ask the guarantor for the amount they guaranteed. That can mean selling their home. The guarantee also reduces how much they can borrow themselves. Lenders require guarantors to get independent legal advice, and we recommend they do so before agreeing to anything.
Limiting and removing the guarantee
A guarantee should be limited to a dollar amount, not the whole loan. Once you have paid the loan down or the property has risen in value so that you owe 80% or less, we can apply to release the guarantor. We put a date in the diary to review it.
Who can be a guarantor
Most lenders accept parents. Some accept siblings or grandparents. The guarantor needs enough equity and, with some lenders, income of their own. Retired guarantors are assessed more carefully.
How we handle it
The same four steps on every loan, whatever the size.
Talk
A 20-minute call about what you want to do. No documents needed yet.
Compare
Your scenario priced across 40+ banks, mutuals and non-bank lenders, explained in plain English.
Settle
We package the application, lodge it and chase the lender through to settlement.
Stay sharp
Every year we check your rate against the market, so the loyalty tax never gets a grip.
Questions people ask
Does the guarantor give me any money?
No. They offer security, not cash. Nothing comes out of their account unless the loan fails.
Can a guarantee be combined with first home schemes?
Sometimes. It depends on the scheme rules and the lender. We check for your situation.
General information, last updated November 2026. Scheme figures, lender policies and duty rates change, so confirm them before you rely on them.
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Let’s talk about your next move
Twenty minutes on the phone. No documents and no sales pitch.