guarantor
What guarantee would we need?
Enter the purchase and the guarantor's property. We will show the guaranteed amount and whether the equity carries it.
your numbers
Cash the buyers are contributing, after keeping a buffer aside.
Not sure? Work it out with our stamp duty calculator.
Are costs paid from savings or added to the loan?
the guaranteed amount
$160,000
The portion of the loan secured against the guarantor's property, on these assumptions.20.0% of the purchase price.
Total loan
$800,000
Buyers' property only
$640,000
Up to 80% of the purchase price.
Secured against both
$160,000
The guaranteed portion.
If the buyers contributed $20,000 more, the guarantee would fall to $140,000.
NO CONTRIBUTION
$160,000
Guarantee required
5% CONTRIBUTION
$120,000
Buyers put in $40,000
10% CONTRIBUTION
$80,000
Buyers put in $80,000
Assumes release at 80% LVR and that the guarantor's property can be used to 80% of its value. Both vary by lender and are confirmed per applicant.
Lenders mortgage insurance may still apply on some structures. Whether it does, and what it costs, is confirmed per applicant.
does the equity carry it
The capacity test is held back until the usable limit on a guarantor's property is confirmed. Until then, capacity is confirmed by a policy check per applicant.
This cuts both ways.
The guaranteed amount is not the guarantor's ceiling. Guarantee documents usually extend to interest and enforcement costs, so the exposure can sit above the figure shown here.
The equity test on this page is a general position. Lender policy varies on how far a guarantor's property can be used, and on how large a single guarantee can be.
A guarantee affects the guarantor's own borrowing capacity for as long as it runs. That can matter if they plan to refinance, renovate or buy again.
Independent legal advice is required before anyone signs. That is a protection for the guarantor, not a formality.
a quiet conversation
A guarantee is a family decision before it is a lending one.
If the numbers here look close, we can walk through the structure with both households, and confirm what a lender would actually accept.
Book a time