Guarantor Home Loans


Unlock Your Property Dreams with a Guarantor Loan

Looking for a Guarantor Home Loans? We can help.

Struggling to accumulate funds for a down payment? Accumulating a substantial down payment for purchasing a home can be challenging, particularly when simultaneously covering rental expenses. However, there is a potential solution that could expedite your progress: obtaining a loan with the guarantee of a family member. By opting for a guarantor home loan, you have the opportunity to secure a loan amount that is up to 105% of the purchase price of your property. This can greatly facilitate the process of becoming a homeowner.

If you have a person who is willing to act as a guarantor, a third-party home loan could be an ideal option. What is the most outstanding aspect? A significant number of borrowers are able to eliminate the guarantee within a period of 3 to 5 years.

What is a Guarantor Home Loan

Several lenders offer the option for a family member, such as a sibling, parent, spouse, de facto partner, grandparent, or even an extended family member, to assist in purchasing a home or investment property by providing additional collateral. A “Guarantor” is an individual who offers their own property as collateral to secure your loan.

Although this can expedite the process of obtaining a home, it is crucial for both the borrower and the guarantor to comprehend the potential hazards, as the guarantor’s property may be jeopardised if the borrower defaults on the loan. Notwithstanding the increased security measures, the lender will still verify your ability to independently afford the mortgage payments.

Benefits of a Guarantor Home Loan:

Maximise Your Home Loan Potential with Guarantor Support - Smooth Home Loans

If you’re considering a Guarantor Home Loan, it’s crucial to understand the long-term implications for both you and your Guarantor. Secure your home loan journey today!

Unless you refinance, pay off, or build equity in your home, a Guarantor will remain on your mortgage until you can show you can make payments. Depending on the lender’s policies, releasing the Guarantor may incur additional fees. Both the borrower and the Guarantor must understand these terms and their financial implications.

A home loan can have multiple guarantors for lender peace of mind. However, lender and loan requirements for multiple guarantors vary. Anyone considering guarantor should know that if the borrower defaults, they must pay. Different legal and financial advice should be sought before having more than one guarantor, as it may affect their ability to borrow money.


No, they don’t.

Certain lenders provide limited guarantees, in which the loan guarantor is obligated to secure only a fraction of the loan rather than the entire sum. This strategy mitigates the guarantor’s risk by relieving them of the obligation to assume full liability for the loan, thereby safeguarding them against unwarranted financial vulnerability.

In the event that you are unable to repay the loan, the lender has the right to file a lawsuit against both you and your Guarantor, who is responsible for the guarantee amount. It is imperative that property loan guarantors obtain independent legal and financial advice prior to accepting this role, as the majority of lenders mandate this prior to accepting a guarantee. In addition, it is crucial to evaluate the potential reduction in borrowing power that may result from becoming a Guarantor prior to accepting this obligation for oneself.

Why choose Smooth Home Loans?

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Flexible options

Exploring offset savings or extra repayments? Our diverse loan features fit your needs.

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As an online lender with lower overheads, we pass on savings to you, our customers.

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