Hello everyone
If I have the means to service a loan for example $600k, however I do not have a suitable deposit saved (20% to avoid LMI), is it possible to have someone go guarantor for the short fall of the deposit only so I do not have to outlay LMI?
I do not require a guarantor for the life of the total loan, only the short coming of the deposit.
Any help will be appreciated.
Regards,
DarylDaryl
2 ways to get around the LMI:
1) The Guarantor who i assume would be a parent or similar to borrow and lend you the 20% deposit and you apply for the loan on a standalone basis.
2) A family Guarantee style loan whereby the lender secures the 20% deposit against the Guarantors security (normally first mortgage is required) and their Guarantee is limited to 20% of the purchase price plus costs if required.
This is a common style product for clients purchasing their first home where their parents are happy to assist.
Once the property you are purchasing has increased in value and is less than 80% of the property value then the Guarantors obligations are released.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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