Home Loan Rate – Australia

Did you think that a home loan at 100% is no longer possible?  Well we would like to show you that it is still possible with a little help.

The usual percentage that home loans are granted often reach up to only 80% of the total property value.  Why do you think it is set up to a certain point?  This is because banks and lenders are trying to reduce their risks by not lending out too much to one particular person.  However, there is still a way to get a 100% home loan.  This is with the help of a guarantor.  The guarantor will assure the bank or lender that a borrower will be able to pay.  The guarantor then offers something as security.  The security may be in the form of cash, stocks, property or any other security deemed to be acceptable by the bank.

Often guarantors are family members, most common of whom are parents who would like to help out their children purchase their first home, or they can also be close relatives who wouldn’t mind helping their blood relations get a place of their own.

With the help of these guarantors a 100% home loan is now possible.  In addition it is also a nice way of avoiding payment of Lenders Mortgage Insurance (LMI) which is required for loans of 80% or more of the value of the entire property.  These guarantees can also help avoid the unreasonable at interest rates for all loans above 80%.

These multiple benefits plus the fact that you are able to get a larger loan should encourage family members to help one another get a 100% family guarantee.  The entire family unit can save a lot by avoiding high interest rates and unnecessary premium payments.

The home loan experts will help and show you the best way to capitalise on the use of a family guarantee.  They have access to the banks and lenders who will most likely be willing to grant these types and forms of loans.

There is no doubt that property prices of Australian real estate are constantly on the rise.  Due to this fact, it is becoming harder and harder for investors and first home buyers to make the initial deposits, or get a loan in the first place. What makes it more difficult is that often the market values of properties often rise rapidly, faster than the income you make and the savings you put in your bank account.
Several banks and lenders recognise this continuous problem, and have tried a number of ways to remedy and fix the existing problem.

One of the solutions to get around the deposit that you require is through a family guarantee. The basic idea of a family guarantee is that it will allow you to purchase a home without the need for your own savings as a deposit. With a family guarantee, the existing equity in the guarantor’s home can be used to add as funds for the loan.

A family guarantee however requires that the family member making the guarantee has adequate assets of their own. This means that a family guarantee may not be as effective if the family member acting as the guarantor has low assets of their own, or does not have a good credit score.

With a family guarantee, you are able to apply for many loan types. The loan can have a fixed or variable rate, it can be a no doc or low doc loan, capped rate loans, and many more.

So what are you waiting for? Why loan just 90% when you can loan up to 100% of the property’s value with a guarantee home loan.