Buying a home can be tough, especially when it’s hard to save a big deposit. At Noor Finance, we offer guarantor home loans that let you get into your new home sooner with help from a trusted family member.
What is a Guarantor Home Loan?
Saving up for a home deposit can be difficult. That’s why at Noor Finance, we offer guarantor home loans making it easier for you to buy a home sooner with the support of a family member who’s willing to help.
Benefits of a Guarantor Home Loan
- Enter the Market Sooner: Having a guarantor means you might not need a big deposit, which can help you buy a home sooner than if you were saving on your own.
- Avoid Lenders Mortgage Insurance: The guarantor’s security can lower your LVR, helping you avoid the additional cost of LMI.
- Increased Borrowing Capacity: With the extra support from a guarantor, you may be able to borrow more money, giving you the chance to buy a home that better suits your needs.
Responsibilities of a Guarantor
It’s essential for both borrowers and guarantors to understand the commitments involved:
- Financial Obligation: If the borrower can’t make their loan payments, the guarantor will need to pay back the remaining amount.
- Impact on Borrowing Capacity: Being a guarantor can impact their chances of getting other loans, since they’re responsible for the loan they’ve guaranteed.
- Seek Independent Advice: Guarantors should obtain independent financial and legal advice to fully comprehend the implications of their commitment.
Visit moneysmart.gov.au to learn more.
How Secure Finance Can Assist You
At Noor Finance, we provide comprehensive support throughout the guarantor loan process:
- Personalised Consultation: We look at your financial situation and help you decide if a guarantor loan is the right choice for you.
- Lender Liaison: Our team works with a diverse panel of lenders to find competitive loan options that align with your needs.
- Ongoing Support: We support both you and your guarantor through every step, making sure everything is clear and you feel confident throughout the home-buying process.
Important Considerations
- Equity Release: As you repay your loan and your property value grows, you may be able to remove the guarantor and take full responsibility for the loan yourself.
- Open Communication: It’s important to have open and honest conversations with your guarantor about their role and responsibilities to avoid any misunderstandings.
At Noor Finance, we’re here to provide the expertise and guidance needed to make informed choices. Contact us today to explore how a guarantor home loan can pave the way to your new home.
