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How Do Guarantor Home Loans Work?
A guarantor home loan allows a family member—most commonly your parents—to use the equity in their property to help you buy your first home. This strategy can help you borrow up to 105% of the purchase price, covering your deposit, stamp duty and other upfront costs. With a guarantor structure:
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80% of the loan is secured against the home you're buying
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The remaining 25% is secured against your guarantor’s property
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This can help you avoid LMI, boost borrowing power and enter the property market sooner.
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Meet Matt
Property Investor
We Helped Him Secure 100% Investment Property Finance By Using His Parents As Guarantors.
Matt recently reached a major milestone — purchasing his first investment property with 100% lending, thanks to a guarantor home loan using his parents’ property. His experience shows that entering the property market is achievable even when saving a large deposit feels impossible.
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Overcoming the Deposit Barrier
Saving a 20% deposit is one of the biggest challenges for first-time investors. Like many, Matt had savings but not enough to meet traditional lending requirements. With expert guidance and the right loan structure, he was able to move ahead confidently without waiting years to save more.
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The Investment Property
Matt found an investment opportunity valued at $400,000. He had saved $20,000, but still needed additional support to reach the required deposit. We helped structure a guarantor loan solution that allowed him to proceed without a full deposit.
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How the Guarantor Home Loan Worked
To boost Matt’s borrowing power, we used his parents’ property — valued at $650,000 and fully unencumbered — as additional security.
By leveraging their equity, we were able to secure lending up to 80% of their property value $520,000, which comfortably covered the cost of Matt’s investment property.
Key Figures:
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Matt's Investment Property Value: $400,000
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Guarantor Property Value: $650,000
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Available Security (80%): $520,000
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Amount Borrowed: $400,000
Matt’s own savings were then used to pay the remaining upfront costs, including stamp duty ($13,460) and legal fees ($5,000).
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​Start Your Property Investment Journey
If you’re planning to buy your first home or first investment property but are struggling with the deposit, a guarantor home loan may be the solution. Our expert mortgage advisers can help you explore your options and find the best strategy to achieve your property goals
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