Guarantor Loans Australia – Boost Your Borrowing Power with Family Support
⚡A guarantor loan uses family equity to lower deposit and LMI costs
Suitable For
✓ Buyers with limited deposit savings
✓ First-time and repeat purchasers needing additional borrowing strength
✓ Clients supported by parents or close family members
✓ Borrowers wanting to reduce or remove LMI costs
Loan Purpose
✓ Purchase an owner-occupied or investment property
✓ Use part of a family member’s property equity as security
✓ Reduce deposit requirements, often to zero
✓ Minimise or waive LMI costs through additional security
Loan Structure
✓ Available with variable, fixed, or split rate options
✓ Family guarantee typically secured against a parent’s or close relative’s property
✓ Limited guarantee structures to reduce risk to the guarantor
✓ Borrowing capacity assessed on both primary applicants and security structure
Success Story
Couple Entering the Market with No Deposit
A couple in Brisbane used a limited family guarantee to purchase their first home with no deposit. The guarantor security reduced their LMI to zero and kept repayments affordable.
Single Buyer Boosting Borrowing Capacity
A Melbourne single buyer with steady income but minimal savings secured a townhouse with a parental guarantee, allowing them to avoid years of further renting.
Investor Using Equity Support
An applicant based in Perth used a guarantor-backed loan to purchase their first investment property. The structure improved borrowing strength and avoided upfront premium costs.
Advantages
NO DEPOSIT
Buy with minimal or no deposit by leveraging guarantor property equity.
LMI SAVINGS
Avoid or reduce Lenders Mortgage Insurance through additional security.
HIGHER CAPACITY
Increase borrowing power with strengthened overall security position.
LIMITED GUARANTEE
Use a limited guarantee structure to reduce risk for the guarantor.
FAQ
Contact QLoans.au for the latest policies, rates, and industry updates.
Who can act as a guarantor?
Most lenders allow parents, in-laws, or sometimes close relatives. Each lender sets its own eligibility criteria.
How much equity does a guarantor need?
Generally enough to cover the guaranteed portion—often 20% of the purchase price—subject to valuation and lender policy.
Does the guarantor have to make repayments?
No. The guarantor only becomes responsible if the primary borrower cannot meet repayments.
Can the guarantee be removed later?
Yes. Once the borrower’s loan balance reduces or property value increases sufficiently, the guarantee can be released.
Is a guarantor loan only for first home buyers?
No. It applies to first-home and repeat buyers, although individual lender policies may differ.
What makes QLoans.au different from going directly to a bank?
A conversation with QLoans.au can uncover loan solutions that one lender alone might not offer. Our expert brokers compare competitive options across banks, non-banks, and specialist lenders, keeping you informed on current policies. From pre-assessment to post-settlement, we provide guidance to streamline the entire process and maximise your options.
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