How an Equity Guarantor can help with your deposit

This type of loan is appropriate when the applicant/borrowers’s (your) income is enough to cover the loan and repayments but they do not have the required savings for a deposit. The maximum lending usually available is 95% of the property’s purchase price so generally a 5% deposit is required. Saving this amount can often be difficult, especially when paying rent, so a guarantor can service minimum 20% of the loan to allow the applicant to borrow up to 100% of the purchase price. Guarantors are usually limited to immediate family members. Another benefit of having a guarantor is that the …