Buy with a small deposit
Borrow more with a smaller deposit, or in some cases none at all.
WITH A LITTLE HELP FROM FAMILY
Family guarantee home loans in Brisbane.
No big deposit yet?
Family equity may help.
A family guarantee uses equity in a family member’s property as extra security for your loan. It can reduce your LVR and may help you avoid LMI. We find lenders that offer guarantees and make sure both you and your guarantor understand the commitment. Personal guidance from Ausfirst Lending Group’s mortgage brokers in Brisbane and on the Sunshine Coast.
Excellent · 35 Google reviews
Family behind your first door.Let’s make the guarantee work for everyone.
LESSdeposit, no
LMI, maybe.
LMI, maybe.
40+Lenders on our panel
30+ yearsRichard’s broking experience
$0Broker fee for home loans
Local careBrisbane & Sunshine Coast
HOW A FAMILY GUARANTEE WORKS
Their equity,
your front door.
A family member, such as a parent or sibling, offers part of their property as additional security for your loan. The guarantee covers part of the loan, usually the amount above 80% of the purchase price, so the lender sees less risk.
Possibly avoid LMI
If the overall LVR meets the lender’s requirements, you may not pay LMI.
Meet LVR thresholds
The added security can bring your loan within lender limits.
Outcomes depend on the guarantor’s equity and each lender’s policy. We check both before you apply.
Start with a free chatWHO CAN BE A GUARANTOR?
Who lenders may
accept as a guarantor.
Guarantor rules differ between lenders. We confirm whether your intended guarantor is likely to meet specific lenders’ requirements.
Parents and grandparents
The most commonly accepted guarantors, often using equity in their own home.
Siblings and guardians
Accepted by many lenders, subject to their own financial position.
Spouses
Some lenders accept a spouse or partner as guarantor in certain circumstances.
Financially independent
Lenders want guarantors who understand the risks and could manage if the loan defaulted.
A QUICK COMPARISON
Pay LMI, or use a guarantee?
| What you compare | Pay LMI | Family guarantee |
|---|---|---|
| Your deposit | Often 5–10%+ | Little or none |
| LMI | Usually payable | Often avoided |
| Family risk | None | Guarantor’s property is security |
| Paperwork | Standard | More steps, legal advice |
Lender policies on guarantees, LVRs and costs vary. The guarantor should get independent legal and financial advice.
Compare my optionsHOW EQUITY IS EVALUATED
How big would the
guarantee need to be?
Lenders value the guarantor’s property, subtract their existing mortgage and check the combined LVR once the guarantee is added. Many look for that to stay around 80% or below.
We work out the guarantee amount and the guarantor’s position before anyone commits.
- A formal valuation of their property
- Their existing mortgage balance
- Their LVR including the guarantee
- Lender limits, which vary
YOUR GUARANTEE, AT A GLANCE
What guarantee might you need?
$100k$2m
Illustrative guarantee needed$100,000
Guarantor’s LVR incl. guarantee27.8%
Against an 80% guideWithin 80%
Illustration only, not a borrowing assessment. Guarantee covers your loan above 80% of the price; some lenders also allow it to cover buying costs. Valuations and lender limits vary, and you must still afford the repayments.
Check my actual optionsWHAT YOUR GUARANTOR TAKES ON
A generous offer,
with real obligations.
Your guarantor’s property is being used to support your loan. Everyone should understand the legal and financial implications before signing.
INDEPENDENT ADVICE MATTERS
If repayments stop, the guarantee applies.
If you can’t repay the loan, the lender can call on the guarantor for the guaranteed amount, and could ultimately take action against their property.
Lenders usually require the guarantor to get independent legal advice. A guarantee can also affect their own future borrowing.
Capped, not unlimited
Most family guarantees are limited to a set amount, rather than the whole loan. That caps the guarantor’s exposure.
A temporary arrangement
Once your loan falls to around 80% of your property’s value, through repayments or growth, the guarantee may be released. We can review it when you’re ready.
Guarantee terms and release conditions vary by lender. Approval is subject to lender assessment.
Let’s make sure everyone’s clear. We coordinate documents between you and your guarantor and explain each person’s commitments.
Check my next stepsASSESSING ELIGIBILITY
What lenders
typically consider.
Each of these affects your eligibility and the guarantee structure a lender offers.
Borrowing capacity
You still need to afford the full loan repayments yourself.
Guarantor’s equity
How much equity is available in the guarantor’s property.
Existing mortgage
Whether their property is mortgaged, and with which lender.
Financial strength
The guarantor’s ability to manage obligations if the loan defaults.
WHEN IT MIGHT SUIT
When a family guarantee
may be considered.
A guarantee isn’t right for every family. These are the situations where it tends to work best.
Less than 20%
You’re buying without the full 20% deposit saved.
Strong equity
The guarantor owns property with significant equity or little debt.
Independent and informed
The guarantor is financially independent and aware of the risks.
You can service it
Your income comfortably covers the repayments on the full loan.
No family guarantee available? A low deposit loan or a professional LMI waiver may be other paths.
Explore low deposit loansSTEPS TO APPLY
Six steps, with
both of you informed.
Family guarantee loans involve more steps than standard loans. Careful planning reduces the chance of delays.
UNDERSTAND
Talk it through together
We meet with you, and your guarantor if they like, to understand everyone’s position.
CHECK
Confirm their property qualifies
We check the guarantor’s property meets lender criteria and estimate its equity.
COMPARE
Find lenders that offer guarantees
We compare lenders that support family guarantees and their LVR limits.
ADVICE
Guarantor gets independent advice
Your guarantor receives independent legal and financial advice before signing.
APPLY & SETTLE
Lodge and settle
We coordinate documents between you, your guarantor and the lender through to settlement.
RELEASE
Review the guarantee later
As your equity grows, we help you release the guarantee.
Richard LukeFounder · Ausfirst Lending Group
WHY CHOOSE AUSFIRST LENDING GROUP
Your family is personal.
Your broker should be, too.
You’re looked after by someone who treats your financial success as his own.
Richard brings more than 30 years of hands-on broking experience. He takes the time to understand both your position and your guarantor’s before comparing lenders that offer family guarantees.
From the first purchase to releasing the guarantee years later, you get clear advice and a long-term lending partner on the Sunshine Coast and in Brisbane.
Borrower and guarantor coordinatedOngoing loan reviews2024 Sunshine Coast Business Awards finalist
Talk to a broker
More about RichardWHAT OUR CLIENTS SAY
Good people.
Great support.
ExcellentBased on 35 Google reviews
Google review
“I would describe Richard and Ausfirst Lending as friendly, insightful, prompt and diligent. A pleasure to deal with.”
Google review
“Debbie made the process of buying a new house frictionless, by providing excellent support throughout”
Google review
“I received very prompt responses to all of my questions and the team ensured that my application was processed in a timely manner. The service was brilliant!”
Excerpts from client reviews displayed on Ausfirst’s website. These reflect individual experiences.
LET’S CLEAR THINGS UP
Family guarantees.
Real questions.
The questions borrowers and guarantors ask most. Every family is different, so we’re happy to talk through the detail with both of you.
Ask about a guaranteeWhat is a family guarantee home loan?
A loan where a family member uses equity in their property as extra security for part of your loan. It can reduce your deposit and LVR, and may help you avoid LMI.
Can I buy with no deposit using a family guarantee?
Some lenders allow it, and some let the guarantee cover buying costs too. You still need to show you can afford the repayments, and many lenders like to see some genuine savings.
Is the guarantor liable for the whole loan?
Usually not. Most family guarantees are limited to a set amount. If you can’t repay, the lender can call on the guarantor for that amount.
Who can be a guarantor?
Often parents, grandparents, guardians, siblings or spouses, depending on the lender. They must have enough equity and be financially independent.
How is the guarantor’s equity worked out?
The lender values their property, subtracts any existing mortgage and checks the combined LVR with the guarantee added, often aiming for about 80% or less.
Can the guarantee be removed later?
Yes, usually once your loan falls to around 80% of your property’s value through repayments or growth. The lender will normally need a new valuation.
READY TO DISCUSS YOUR OPTIONS?
A family guarantee
starts with a chat.
We can assess your eligibility, compare lenders and guide you and your guarantor through the process. No obligation, just an opportunity to explore what might be possible.
Guarantee amount and equity worked out
Lenders that offer guarantees compared
Both parties’ commitments explained
Visit us in Caloundra
Suite 3/74 Bulcock St, Caloundra QLD 4551
Monday–Friday, 9 am–5 pm
YOUR FREE GUARANTEE CHAT
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