Family Guarantee
ANZ, Homeside, NAB & Westpac all use the term Family Guarantee for their guarantor home loans.
However, each loan has distinct features and advantages. So which one is most suitable for your situation? Please read on to find out how they compare.
Pricing / Discounts
All four of these lenders will offer their basic loan and professional package discounts for family guarantee loans.
- ANZ: Breakfree package & Simplicity plus home loan
- Homeside: Homeplus package.
- NAB: Choice Package & Basic home loan.
- Westpac: Premier Advantage Package & Flexi First home loan.
Comparing lending policy
ANZ, Homeside & NAB are far more conservative than most lenders when assessing guarantor loans.
They require both parties to meet a variety of requirements before approving their loan.
Guarantors are expected to provide proof that they can afford to repay their portion of the debt, in the event that the borrower is unable to do so.
Borrowers must also have a strong income as well as employment stability.
Westpac on the other hand does not have this requirement, however are very inflexible with borrowers who have not been in their job for at least 6 months. They also credit score all applications.
Having your application credit scored can be problematic for some.
It often makes it hard to get approval as there is generally no real way of knowing how your circumstances will assessed by the bank.
Failure to pass the credit score may result in an automatic decline of your application.
For this reason, ANZ, Homeside and NAB may be more favourable.
We recommend that you contact us on 1300 399 056 or enquire online to speak to one of our brokers who can compare these loans products in detail for you.
Home Loan Features
- Redraw (fees apply).
- No ongoing fees.
- Low variable rate.
- Internet banking.
- Interest only is available (higher rate for interest only with Homeside).
- Redraw.
- Annual fee is payable (monthly fee for Homeside).
- Discounts on other bank products such as cheque accounts and credit cards.
- 100% offset account.
- Low variable rate.
- Internet banking.
- Interest only is available.
Disadvantages
The main disadvantages of the family Guarantee loans offered by these lenders 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.
- Homeside / NAB may not accept second mortgages as security, therefore the guarantor cannot have an existing debt on their property.
If you are unable to fulfill these requirements we can still help you obtain a guarantor loan from a lender who may accept your circumstances.
What is a family guarantee?
A family guarantee is generally provided by an immediate family member who agrees to provide a guarantee to the banks.
The extent of the guarantee varies and can be limited or unlimited and can be provided by a term deposit or linked to a security property.
If the borrower falls into default on their mortgage, the bank may call upon the guarantors to make the debt repayments or sell their property to cover any shortfall.
Parents typically provide this guarantee to their children who may not have saved enough money to put toward a deposit, but have enough income to make the mortgage repayments.
In most cases, the borrower is financially responsible, but lacks the necessary funds to complete the purchase.
Apply for a family guarantee loan today!
Looking for a competitive guarantor loan package? Please enquire online or call 1300 399 056 to speak to one of our mortgage brokers.
We can help you compare guarantor loans from a variety of major banks and non-conforming lenders.
For most loans we charge no fees and can help you complete your loan application from start to finish. To get in touch with our team, please contact us today.
