Family Guarantee Loans

  • Home
  • Family Guarantee Loans

Family Guarantee Loans

Buy your first home sooner with a little help from family.

Our Family Guarantee Loans help first-home buyers enter the property market faster, without the stress of saving a large deposit or paying extra insurance costs.
Explore your loan options

What Is a Family Guarantee Loan?

A Family Guarantee Loan allows a close family member usually a parent or guardian to use the equity in their own property as additional security for your home loan. This helps buyers who have strong borrowing capacity but don’t have the full deposit needed to avoid Lenders Mortgage Insurance (LMI).

By using a family guarantee, your loan-to-value ratio (LVR) is reduced, which can allow you to:
Borrow up to 100% of the property price
Cover additional costs such as stamp duty, legal fees, and other upfront expenses
Move forward without dipping into your super or delaying your home-buying plans

This structure makes entering the property market faster and more achievable for first-home buyers.

Who Are Family Guarantee Loans For?

Family Guarantee Loans are designed for buyers who have the income to support a mortgage but need help overcoming the deposit hurdle. These loans are ideal for:
  • First-home buyers: Looking to enter the property market sooner
  • Individuals with stable income but limited savings: Strong earning capacity but not enough deposit
  • Families wanting to help without gifting cash: Parents or guardians who prefer to provide security instead of transferring money
  • Homebuyers in NSW and other high-cost markets: Where saving a 20% deposit can delay home ownership by years
Key Features

Key Features of Family Guarantee Loans

Borrow up to 100% of the purchase price including costs Enter the market sooner without needing a large deposit.
No cash contribution required from the guarantor Their property equity is used as security, not their savings.
Reduced or no LMI Lower loan-to-value ratio (LVR) means big savings on insurance costs.
Limited guarantee structure The guarantor only supports a specific portion of the loan—not the full amount.
Flexible exit options The guarantee can be released once your property gains enough equity.
Available to multiple family members Not limited to parents eligible relatives may include grandparents, siblings, and legal guardians.

Simplifying the Jargon Around Family Guarantee in Home Loans

Family Guarantee Loan

Family Guarantee Loan is a home loan supported by the equity in a close family member’s property most commonly a parent’s home. The family member doesn’t

Family Pledge Loan

Family Pledge Loan is a specific version of the family guarantee, offered by certain lenders under that name. The key difference is the guarantor’s flexibility

Family Home Guarantee Scheme

The Family Home Guarantee is a government-backed scheme designed to help single parents with dependent children who have at least a 2% deposit.

Helping You Choose the Right Option

At The Finance Guide, we make these structures simple to understand. Whether you’re exploring: A Family Guarantee Loan, A Family Pledge,.