- In Building wealth - Finance for investors, Home sweet home - first home owner finance, Why use a broker - what we can do for you
Have you arranged for your family to help you with your deposit for your next property? Whether you are hoping to increase the amount you can borrow, or simply to avoid costly mortgage insurance, we can help you by matching you with a lender whom will suit your needs in financing a new home, utilising the assistance of your parents.
Not everyone has cash laying around that they can give their children to help them with their home, and not everyone wishes to refinance their home to take physical cash out to give to their children. The benefit of a security guarantee, is that it allows you to borrow 100% or more of the purchase price of your property. As long as you can afford the repayments with your earnings, than you can borrow the entire purchase amount without needing to pay a single cent in mortgage insurance.
Utilising the equity in your parents or relatives property, certain banks, will be prepared to lend you this entire amount. The bank will register a 2nd mortgage against your parents property, only for the amount they have granted you eg 20% of the purchase price. They cannot be liable for any more than this amount, and would only be liable for this should you fail to make your own home loan repayments.
Just like any loan, each bank will have different criteria. Some lenders will go through your parents finances with a fine-toothed comb, whilst others will offer a simplified process that focuses more on the equity available, along with your relatives confirmation that they understand from a legal stand point what they are agreeing to.
There are also options available for parents to offer their income as a servicing guarantee, to help you borrow more than your current capabilities. This type of guarantee has some further strict criteria to be met, and many banks do not offer this at all.
If you would like to know more about security guarantees or servicing guarantees, and how this can be made possible for you, talk to Sydney Based Finance Broker Bee Finance Savvy, on 1300 140 554 or email firstname.lastname@example.org.
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