As it becomes harder for first home buyers to get a foot on the property ladder, a family member can help them out with a pledge loan. No cash will leave your family member’s hands – they just have to be willing to secure your loan with the equity in their home.
How much will a family pledge loan help?
Depending how much your family member is willing to guarantee to your lender, a family pledge loan can allow you to borrow up to the full purchase price of your new home. It can also cover costs associated with moving in, such as stamp duty and legal fees.
- You won’t need to spend as much time saving for a deposit.
- You won’t need to pay lender’s mortgage insurance (usually compulsory if you borrow 80% or more of the purchase price).
- Some loans will let you use the funds to pay for other outstanding debts not associated with purchasing a home.
We place huge emphasis on educating our clients, so that they can be personally confident in their decision.
Let us keep you updated with the latest information so you can reach your goals faster.