Guarantor Loans
Fast-Track Your Homeownership with a Guarantor Loan
Saving for a home deposit can be a challenging and time-consuming process, especially if you’re paying rent or managing other financial commitments. A Guarantor Loan can help you overcome this hurdle, allowing you to purchase a home sooner with the support of a family member who acts as your guarantor. At ARC Lending Network, we’re here to guide you and your guarantor through every step, making the process clear, simple, and stress-free.
What is a Guarantor Loan?
A Guarantor Loan is a type of mortgage that allows you to secure a home loan with the help of a guarantor—typically a family member—who provides additional security using the equity in their property. This additional security can help you meet the lender’s deposit requirements, avoid paying Lenders Mortgage Insurance (LMI), and increase your chances of loan approval.
Benefits of a Guarantor Loan
-
Purchase your home with a smaller deposit, as the guarantor’s property provides extra security.
-
By having a guarantor, you can often bypass the need to pay costly LMI, saving you thousands of dollars.
-
A Guarantor Loan can enhance your chances of securing a home loan, particularly if you have a limited credit history or lower income.
-
Lenders may offer more favourable interest rates due to the reduced risk associated with the guarantor’s involvement.
How Does a Guarantor Loan Work?
Here’s how we guide you through the Guarantor Loan process:
Finding a Guarantor: The first step is identifying a family member who is willing and eligible to act as your guarantor. They will need to have sufficient equity in their property to offer as security.
Loan Application: Once you have a guarantor, we will proceed with the home loan application. The guarantor’s property will be used as additional security, potentially allowing you to borrow up to 105% of the property’s purchase price.
Approval and Purchase: After the loan is approved, you can move forward with purchasing your new home. The guarantor provides a limited guarantee, covering a portion of the loan amount.
Repaying the Loan: As you make regular repayments and build equity in your property, the guarantor’s liability decreases. Once you’ve built enough equity, the guarantor can be released from their obligation.
Why Choose ARC Lending Network?
Personalised Guidance
We provide tailored advice that suits your unique circumstances, ensuring you and your guarantor fully understand the process and risks involved.
Independent Expertise
As independent mortgage brokers, we work for you—not the lenders. Our priority is securing the best loan terms and interest rates for your situation.
Technology-Driven
Our use of advanced technology streamlines the application process, keeping you and your guarantor informed with real-time updates.
Ready to Explore Guarantor Loans?
If you’re considering a Guarantor Loan to fast-track your homeownership, contact us today to discuss your options. At ARC Lending Network, we’re committed to helping you achieve your homeownership dreams with the support and guidance you need.