Max and Louise
Guarantor Home Loans
Max and Louise were looking to buy their first home but did not have enough savings to be able to make a 20% deposit for a home loan due to their young age and the costs of going through University.
Max and Louise were looking to buy their first home but did not have enough savings to be able to make a 20% deposit for a home loan due to their young age and the costs of going through University.
After having discussed different ways they could approach getting a home loan, we decided that due to their strong relationship with Max’s parents, a guarantor home loan would be a safe and logical option for the young couple. The benefits for Max and Louise were that by getting a guarantor home loan, they did not have to pay Lenders Mortgage Insurance (LMI), which meant they could focus on making their loan repayments. Further, their lender was reassured that mortgage repayments would be covered as they could demonstrate a clear commitment to their existing loan facilities and rent paid previously, that the lender was happy to approve their loan.
The outcome for Max and Louise was that they could get into the property market and have their own place to call home far sooner without having to save a large sum of money and risk not being able to get into the property market. Furthermore, the savings on Lenders Mortgage Insurance (LMI) was significant (around $15,000) which meant they didn’t have to fund this or add to their mortgage giving them a better and lower mortgage repayment.