Sell with Confidence
Read More
News

Lenders Offer First Home Buyers Helping Hand

By Rebecca Richmond

First home buyers should be able to jump on the property ladder sooner rather than later thanks to recent changes by some lenders to their guarantor requirements.

Loan Market Melbourne broker Alexander Heifetz said several of Australia’s lenders have amended their Family and Security Guarantee Loans in recent months, removing certain restrictions for guarantors to include extended family members.

The changes now mean a guarantor will no longer have to be a parent, sibling or spouse of the borrower for a security guarantee, formerly known as a family guarantee.

“This change in policy is going to help certain first home buyers with healthy incomes but limited savings enter the property market with help from guarantees who traditionally haven’t been allowed to put their support behind a low-deposit holder’s mortgage.” Mr Heifetz said.

“Most guarantee loans are a single loan secured by both properties; the property purchased by the first home buyer and the guarantors’ property. The benefit of this option is that there is no requirement to make a lenders mortgage insurance payment and that you don’t have to demonstrate that a deposit you have was genuinely saved.”

Up to Date

Latest News

  • Seven brands helping you to ditch single-use plastic

    There’s no doubt the coronavirus pandemic forced many of us to change our habits during lockdown. We worked from home, dined out less, shopped more, and upped our intake of takeaway meals, ‘quarantinis’ and coffee and, in turn, upped our use of single-use plastic containers. According to the 2020 National Waste … Read more

    Read Full Post