you looking to buy your first home? With family support, you could achieve your homeownership dream sooner.
Family Pledge or Family Guarantee loans allow a family member to use the equity in their home to secure your loan. Typically, the family member acts as a guarantor for a portion of the loan. Once you’ve built up enough equity, you can release your family member’s liability and take full responsibility for the loan yourself.
Benefits of a Family Pledge
For Borrowers:
- No Deposit: With a guarantor’s support, you won’t need to save for a deposit.
- Maximise Borrowing Power: Borrow up to 100% of the purchase price, plus costs like Stamp Duty and Legal Fees.
- Avoid Lenders Mortgage Insurance (LMI): Save money by avoiding LMI when a guarantor backs 20% of the property value.
For Guarantors:
- Retain Existing Home Loan: Keep your home loan with your current provider.
- Limited Liability: The guarantor’s liability is capped at a specified amount.
- Release from Guarantee: Be released from the guarantee, generally when the loan-to-value ratio (LVR) reaches 80%.
Family Pledge Loans can be as flexibility as standard home loans and can be used to purchase either an owner-occupied or investment property.
At Triple M Finance, we’re here to help you achieve your property dream sooner.