GUARANTOR LOANS


Get a no-deposit home loan with help from your family!

  • Borrow up to 105% of the purchase price with your parents as guarantors
  • Buy sooner, as you don't need to save for a deposit
  • No Lenders Mortgage Insurance cost
  • Get special rates as a first-home buyer

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Guarantor Loans Explained




A guarantor loan helps you buy a home when you don't have a large deposit saved up.

Here's how it works:

  • A family member (usually your parents) uses their home as extra security for your loan
  • This lets you borrow with little or no deposit
  • You avoid paying expensive mortgage insurance
  • Your guarantor doesn't give you money or make your payments
  • They only step in if you can't pay your mortgage


Think of it like having someone co-sign your loan, but only for a portion of it. Your guarantor is essentially telling the bank: "We trust this person will repay their loan, and we're willing to back them up."

The arrangement usually lasts 2-5 years, until you've paid down enough of your loan or your property has increased in value.

This is a great option for first home buyers with good income but not enough savings for a full deposit.

What’s The Attraction Of Guarantor Loans?

Apart from significantly cutting down on the time it takes to save for a home loan deposit, the major attraction of guarantor home loans is their ability to help an applicant avoid paying Lenders Mortgage Insurance. This is because the guarantor is essentially the ‘backer’ of the buyer and is vouching for their ability to repay the loan.

What’s A Downside To Guarantor Loans?

The downside of guarantor home loans is that in the event that the primary buyer should default on the mortgage, the guarantor may be responsible for paying back the guarantor portion in some rare circumstances. As such, opting to become a guarantor for someone you love isn’t a responsibility that should be taken lightly, as the guarantor is arguably the one that stands to lose the most financially.


Our Experts.


For Australians seeking home financing, partnering with a LendAu broker is your key to navigating the complex lending landscape with confidence.

Nearly 75% of new residential home loans in Australia are now arranged through mortgage brokers—and for good reason. LendAu brokers offer access to an extensive range of financial products across multiple lenders and provide expert, unbiased guidance tailored to your unique financial situation.

With our nationwide network of experienced professionals, we help you secure competitive rates and terms that traditional bank-only approaches simply can't match.