Buy with no deposit (or low deposit) when parents (or some other immediate family members) use their own property as guarantee

It is possible to purchase a property with no deposit (or low deposit) with the help of a guarantor. Security guarantee is the most accepted: guarantor must use his/her property as a guarantee (security/collateral) and the property must have enough available equity (as guarantor’s property could already have another mortgage).

In this case, the home loan applicant must be able to afford the home loan repayments with his own income, independently from the guarantor. Also, some lender will require that the guarantor must be able to afford the repayments of this home loan to be a qualified guarantor, making things more complex. 

Not everybody can be guarantor: typically, parents, spouse and de facto, but also other immediate family member according to the lender’s policy (adult child, grandparents, siblings, etc). 


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