Although most banks only accept guarantee from your parents, some lenders can consider a guarantee from your sibling, spouse, grandparent, or any immediate family member. Having a guarantor aside from your parents might result in additional criteria required by the lender to get you approved.
Getting an expert legal advice is important when applying for a guarantor loan because it involves additional risk. You have to understand fully the terms and conditions of the loan, but also your obligations to the guarantor in case you can’t make your repayments.
Studying your options with a 3Carrots mortgage broker can help you avoid decisions that you will regret in the future. Planning an exit strategy from the guarantee with your mortgage broker is vital so that your guarantor’s security property can be released from the bank’s mortgage as soon as possible.
It is also wise to obtain insurance so you can protect your guarantor from losing their home in case you cannot meet repayments due to illness or accident.
If you would like to talk to a mortgage broker from 3Carrots to discuss guarantor loans, please call 0434 390 688.