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Guarantor home loans

Homeownership could be closer than you think

Saving a full deposit can be one of the biggest hurdles to buying your first home. A guarantor loan may provide an alternative pathway, helping you enter the property market sooner without needing a large cash deposit.

In our experience, this is going to be simpler than you think.

Discuss guarantor loan options

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We’ll guide you and your family through the process

A guarantor loan allows a family member—most commonly a parent—to use the equity in their own property as additional security for your home loan. This reduces the lender's risk and, in many cases, can remove the need for a substantial deposit.

Depending on your circumstances, a guarantor arrangement may also help you avoid Lenders Mortgage Insurance (LMI) or access a more competitive interest rate.

We'll take the time to explain how everything works, answer every question and support both you and your guarantor throughout the entire process.

Discuss guarantor loan options

Why choose a guarantor loan?

Buy Sooner.

You may be able to purchase a home sooner without waiting years to save a full deposit.

Reduce Upfront Costs.

Depending on your circumstances, a guarantor loan may help you avoid paying Lenders Mortgage Insurance (LMI), reducing your upfront costs.

Guidance for Everyone Involved.

A guarantor arrangement is a significant decision for both you and your family. We'll ensure everyone understands the process, responsibilities and available options before moving forward.

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“I cannot speak highly enough of Hayden and the team at Soho Financial! Throughout the process of refinancing my complicated portfolio, they demonstrated exceptional expertise and dedication.”

From our initial meeting, Hayden took the time to thoroughly understand my financial situation and objectives, and he consistently went above and beyond to identify the best refinancing options to suit my needs.

The responsiveness and communication from Hayden is unmatched. He kept me informed at every stage of the process, promptly addressing any questions or concerns I had. He made me feel confident and reassured throughout the entire journey.

I wholeheartedly recommend Soho Financial to anyone seeking a professional, responsive, and highly skilled financial team. Thank you, Hayden, for your outstanding efforts and for helping me achieve my financial goals!

- Josh H

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Is a guarantor loan the right option?

A guarantor loan may be worth exploring if:

✓ You're struggling to save a full deposit.

✓ A parent or close family member is willing to support your purchase.

✓ You'd like to enter the property market sooner.

✓ You're hoping to avoid paying Lenders Mortgage Insurance (LMI).

✓ You're buying your first home and want to understand all of your available options.

Every family's circumstances are different. We'll provide honest advice and help determine whether a guarantor loan is the right solution for you.

Frequently Asked Questions

We've answered some of the most common questions about guarantor loans below. If you can't find what you're looking for, our team is always here to help.

  • A guarantor is usually a parent or close family member who uses the equity in their own property as additional security for your loan. This reduces the lender's risk and may allow you to purchase with a smaller deposit or avoid Lenders Mortgage Insurance.

  • No. In most cases, the guarantor isn't providing cash. Instead, they're using the equity in their property as security for part of your loan.

  • A guarantor is agreeing to support part of your loan should you be unable to meet your repayments. We'll ensure both you and your guarantor fully understand the arrangement before proceeding, so everyone can make an informed decision.

  • Entering the property market is no easy feat for a first homebuyer, and it’s common for parents to want to help first homebuyers either through gifting funds for the deposit, or by acting as guarantor on the loan.

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Ready to take the next step?

If you're exploring a guarantor loan, we'd love to help you understand your options. We'll guide both you and your family through the process, answer every question and help you move towards home ownership with confidence.