Get a Guarantor

A guarantor loan enables an existing Australian homeowner, such as your parents, to provide a limited guarantee for your mortgage. The guarantor uses equity in their own property as security for the borrower’s deposit. The primary security for the loan is still the borrower’s new property. Lenders offering these loans also put a mortgage over the guarantor’s property, which supports the guarantee.

Existing Equity 

If you’re a homeowner or investor, you could have a deposit under your nose. You could already be sitting on a substantial amount of equity that could negate the need to save a deposit for your next purchase. This is particularly powerful in markets where property prices have grown in recent years. Buyers should remember that you won’t usually be able to borrow the full amount of equity that  has been created. Boosting the value of your property can be as simple as making some key aesthetic improvements or renovations, and having a number of lenders appraise the property’s value – some may value it more highly than others.

Superannuation 

Some people who consider themselves cash poor may have thousands of dollars stashed away in superannuation – and under the right circumstances this can be unlocked for property investments. Depending on your situation you might be in a position to establish a self-managed super fund (SMSF), which could open up the opportunity to invest into property without having to save for a deposit, but always seek independent legal and financial advice based on your circumstances.

John can be contacted on 0749722081 or 0410433919.  or  email him at jwhitten@ihl.net.au or net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).