08 8182 5555

Family support, with the risks clearly understood

A family guarantee may help an eligible buyer purchase sooner, but it creates serious obligations for the guarantor. We explain the structure and possible exit pathway.

  • Understand the borrower and guarantor responsibilities
  • Compare limited-guarantee structures
  • Estimate how much security may be required
  • Plan how the guarantee could later be released
08 8182 5555
Family discussing a guarantee home loan with a mortgage broker
FamilySupport
RiskReviewed
40+Lenders
South Australian Owned Independent and local
Established in 1999 Decades of experience
Licensed credit provider Australian Credit License 385791
Bank + non-bank options Approved lender panel
Mortgage broker explaining family guarantee options to buyers and a parent

How family guarantee home loans work

A participating lender may take a limited guarantee supported by equity in a family member’s property. This can reduce the effective loan-to-value ratio and may help the borrower meet deposit requirements or avoid LMI.

The guarantor is not simply providing a reference. If the borrower does not meet the loan obligations, the guarantor can be responsible up to the guaranteed amount and their property may be at risk.

Before a guarantor commits, compare the arrangement with other low deposit home loan alternatives and understand whether Lenders Mortgage Insurance could apply instead. Home loan pre approval can then help confirm whether the borrower can afford the proposed loan in their own right.

How a mortgage broker helps with a family guarantee home loan

  1. Review your position

    We confirm your affordability, available deposit and the amount of family support you may need.

  2. Understand your guarantor’s position

    We review your guarantor’s proposed security and explain how a guarantee may affect them and their property.

  3. Compare your guarantee options

    We compare lenders and look for a suitable structure that limits your guarantor’s exposure where possible.

  4. Coordinate your guarantor’s independent advice

    We help organise the lender requirements while your guarantor obtains independent legal and financial advice.

  5. Plan to release the guarantee

    We explain the lender conditions and help review your loan when your repayments or property growth may allow the guarantee to be removed.

Family guarantee home loan FAQs

Policies vary. Parents are common, while some lenders may consider other close family relationships. The guarantor usually needs acceptable property equity and must meet the lender's requirements.