Home Loan Types

What is a guarantor? / Why use a guarantor?

What is a Guarantor?

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What is a guarantor?

Buying your first home can be a big financial challenge. Many lenders allow a family member to help you to buy your own home by providing additional security. The person providing this assistance is known as a guarantor. A guarantor can help you secure a home loan by offering their own property as security for the loan.  Home loan guarantors are generally limited to immediate family members such as parents and spouses. Although some lenders may also allow siblings, parents-in-law, step-parents, grandparents and even aunts and uncles to act as guarantor for you.

Why use a guarantor?

Guarantors can help you secure a home loan if you’re unable to save enough for a deposit. They can prove to a lender you can otherwise make the required repayments.

Guarantor loans have several benefits for you as the borrower:

  • You don’t need a deposit, allowing you to buy a home now.
  • Borrower do not have to pay Mortgage Insurance.
  • You can consolidate some minor debts, such as credit cards, when you buy your home.
  • You can limit the size of the guarantee.

How does it work?

Your guarantor will provide a guarantee for your home loan which is secured on their property. A guarantor allows the equity in his or her own property to be used as additional security for your loan. The primary security for the loan will be your property. The lender will also take a mortgage over your guarantor’s property. This mortgage will not support the loan directly but will be used to support a guarantee from your guarantor.

As a result Guarantor loans have become very popular in recent years. They cost less than standard home loans, they allow you to buy without a deposit and some lenders now allow you to limit the size of the guarantee.

Premium Mortgage Brokers can help you with guarantor home loan in Sydney, Sunshine Coast and Brisbane.

If you want to know anything else please contact us. You can contact us without leaving home.

Why Mortgage Brokers are better / advantages of Mortgage Brokers

Why Mortgage Brokers are better?

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Do you ever ask yourself: “Why I would go to a mortgage brokers when I can go straight to the bank? Why Mortgage Brokers are better ?”. If you are unsure about which option you should make, read our post.

We have some advantages of Mortgage Brokers to conqure you choose us.

  • You can make choice. When banks have only one loan product, Premium Mortgage Brokers  have access to 40+ lenders. So you will be able to get the most suitable loan product. This is the biggest advantage a mortgage broker has over a bank
  • Mortgage brokers can save you time. A Mortgage broker can take care of the whole home loan process on your behalf, So you have much more time to enjoy your free time.
  • We give you personalised service; the client is our business. So Mortgage Brokers know what needs to be done for you and ensures that you have the best experience. Bankers can not give you this type of personal service. Premium Mortgage Brokers wants to establish a long-term relationship with our clients.
  • Mortgage brokers may have more access. Some lenders work exclusively with mortgage brokers, so you do not have access to every lender in the market.
  • Special extra services. Some mortgage brokers will do more than just find you a mortgage loan.
  • Mortgage brokers do all paperwork for you.
  • Mortgage brokers can help get home loans for people with bad credit.
  • Maybe your mortgage may be the biggest financial transaction of your whole life; It is too serious to do it yourself.
  • Mortgage brokers experience. Unlike you, your broker knows all the subtleties of loans , so he / she can choose the best option for you.

We are professionals in the home loan market and we can help you with your mortgage. Maybe now you must ask yourself: “Why I am not using Premium Mortgage Brokers service?”.

So there are all the reasons as to why you would choose Premium Mortgage Brokers for your home or investment loan services. If you want to know anything else please contact us. You can contact us without leaving home.