Trying to save a deposit for your first home whilst still renting is virtually impossible. Having said that there are ways that we can assist you to get into your home sooner. For most people buying their own home is a better financial decision then continuing to rent long term. If you aren’t sure which is better for you have a look at our Rent vs Buy Calculator.
Almost 50% of first home buyers get financial help from their parents or family to assist with the home deposit. This is normally as an informal loan or gift. But there are other options. A parental guarantee can also be known as a security guarantee or a family pledge. This method enables a family member to use equity from their own home to provide additional security . When structured properly a Guarantee can have many advantages. This solution reduces the loan to value ratio on your portion of the loan. This can save you a significant amount of money by removing any potential lenders mortgage insurance you may have otherwise paid.
A parental guarantee may also enable you to borrow the total purchase price and the transaction costs. With many lenders this means you will not need any savings or deposit. If you do have a savings goal in mind our Saving Calculator can be an effective way of planning your way to success.
A guarantee can also be used when buying established dwellings or building a new house. In some states and territories this may affect your eligibility for the First Home Buyers Grant Builders Boost.
So get into your own home faster with the help of your family. Click get started below and book a free appointment today.