Guarantor loans are mortgages where a friend or family member use the equity they have in their own property, as additional security for the deposit for your new house purchase or house and land package.

Guarantor loans are most popular with first home buyers who do not have the required deposit saved before they decide to purchase a property, it is also a way of avoiding paying Lenders Mortgage Insurance, which can be quite costly.

Family Guarantors are required to consider the consequences of offering security. If for whatever reason, the borrowers cannot afford to meet their financial commitments, the guarantors will be responsible for a portion of the debt.