If you can’t save a deposit to get a mortgage or home loan, maybe your parents, a relative or friend can help with a gift, loan, or go as home loan guarantor.
Parental gifts
Obviously, the most appropriate loan is one you don’t have to pay back.
If someone is willing to give you money to help you buy a home – and doesn’t expect it to be repaid – you’re very fortunate. But make sure you get it documented. Otherwise your lender will consider it a loan that has to be repaid.
Parental loans
Your parents might be able to help you with a deposit for a home loan – but they probably want it repaid.
Still, this could be a big help, particularly if they are offering the money at a favourable interest rate. Again, you should have the parental loan documented because your lender will want to know the details.
Home loan guarantor
Your parents mightn’t have any spare cash, but they might be able to help you by going guarantor on your loan.
For example, your parents may have equity built up in their own home that a lender would consider as security – if your parents were agreeable.
However, your parents should be aware that going guarantor on your loan will affect their borrowing capacity, and possibly their retirement lifestyle.
We can assist you to determine what will work best for you and start planning for the lifestyle you want in retirement. Give us a call at 08 8211 7180 or send us an email at info@centramoney.com.au.