Deposit Kickstart
Suncorp’s Deposit Kickstart loan allows you to borrow 100% of the purchase price by using a family member’s property as extra security for your loan.
Suncorp is well known for its normal home loans, its Back to Basics Loan and Money Manager Package, so how do those products compare with their guarantor loans?
Pricing / Discounts
Suncorp will offer their basic home loan and professional package with the guarantor option.
However, there are some significant differences in the pricing for different lenders.
- Back to Basics Home Loan (Basic Loan): This is ideal if you are borrowing under $250,000 or if you don’t want to switch your everyday banking to Suncorp.
- Money Manager Package (Professional Package): This loan is better suited to those that are borrowing over $250,000 and who want to switch their banking to Suncorp.
Lending Policy
Suncorp have quite a flexible lending policy when it comes to guarantor home loans.
They generally approve a guarantor loan even if you are refinancing your existing home loan.
In some circumstances, they will even lend you up to 110% of the purchase price!
However, in other ways they can be quite conservative, as they require the guarantor to prove their income before considering approval.
Second mortgage on the guarantor’s property
Second mortgages on your guarantors property are viewed by Suncorp as acceptable security.
However, if the second mortgage will seriously impact upon the guarantors financial security, it is advisable that the guarantor consider one of the following options instead:
- Gifting a sum of money to the borrower to put towards the purchase price, rather than taking out a guarantor loan.
- Refinancing their existing home loan to a Suncorp loan.
- Providing a different form of security, such as a term deposit, or a property that does not already have a mortgage attached to it.
We recommend that you enquire online or call us on 1300 399 056 and one of our mortgage brokers will help you work out which option will best suit your needs.
The borrowers loan
The purchase of standard residential properties are acceptable loan purposes for a Suncorp Deposit Kickstart Home Loan.
This includes the purchase of existing dwellings or vacant land where construction is about to commence.
Note that you will be required to provide the bank with plans and a building contract to prove this.
Suncorp does not offer guarantor loans for investment properties. Additionally, the loan must be secured behind the property as a first registered mortgage.
Home Loan Features
- Basic Loans
- Redraw (fees apply).
- No ongoing fees.
- Low variable rate (additional rate discount for loans over $250,000).
- Internet banking.
- Interest only is available.
- Guarantee can be limited.
- Professional Package
- Redraw.
- Monthly fee is payable.
- Discounts on other bank products such as cheque accounts and credit cards.
- 100% offset account (multiple offset accounts are allowed, this is unique to Suncorp).
- Low variable rate.
- Internet banking.
- Interest only is available.
- Guarantee can be limited.
Criteria for borrowers
In order to qualify for a Suncorp guarantor loan, the borrower must:
- Have a stable income and demonstrate an ability to repay the loan.
- Have no defaults or blemishes on their credit file.
- Have been living at their current address for a suitable period of time, to prove stability.
- Employment security.
Additionally, this loan is only available to Australian residents who are natural persons. Companies and trusts are not eligible to apply for this product.
Criteria for guarantors
It is preferred that the guarantor is an immediate family member of the borrower. However, where they are not, your application will be assessed on a case by case basis and may be approved if all other lending criteria are satisfied.
There is also a requirement that the guarantor certify that they have sought independent legal advice, confirming that they are aware of the risk that this loan carries.
The guarantor must understand that their property may be at risk if the borrower defaults and the guarantor becomes liable for their debt.
Additionally, companies and trusts are not permitted to provide the guarantee and all guarantors must demonstrate an ability to repay the loan, in the event that the borrower cannot.
This means that they must have an ongoing income that can support the borrowers mortgage, or have other financial resources available.
Need help with your guarantor loan application? Please enquire online or speak to us on 1300 399 056 and we can determine whether you will meet the banks lending criteria.
Disadvantages of this loan
The main disadvantages of the Deposit Kickstart loan offered by Suncorp are:
- The guarantor will be required to prove they have a good income.
- The guarantor will have to provide additional paperwork such as tax returns, tax assessment notices and statements of their current debts.
- The loan cannot be used to buy an investment property.
Find out more
Interested in a Suncorp Deposit Kickstart loan? We recommend that you enquire online or call us on 1300 399 056 to talk to one of our mortgage brokers.
We can help you compare the Deposit Kickstart loan to the other guarantor home loans available to find out which bank offers the best loan package for your situation.
For most loans we charge no fees, offer the same loans available from the banks and can help you protect the guarantor! Speak to us today.