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Australian mortgage holders flex $20bn worth of ...

With lots of people coming off fixed rates right now, it’s no surprise we’re experiencing an enormous amount of refinancing within the industry, as borrowers look to switch to lower-rate loans…

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property

Guarantor Loans Explained

Guarantor Loans Explained

Saving for a deposit is time consuming and costly to say the least!  Obtaining a 20% deposit is difficult in a rising property market, and can restrict first home buyers.  Lending becomes tighter for loans over 80%, and a Lenders Mortgage Insurance Premium is additionally required.  When adding on stamp duties, government charges and solicitor fees, things can start to add up quickly!

Guarantor loans can offer a solution to this, allowing you to purchase with a lower deposit required.
 

So, what is a guarantor loan?

Your guarantor essentially ‘guarantees’ your home loan by using their property as security.  That is, the bank holds both your property and your guarantor's property as security.  Most commonly, parental guarantees assist in buying first homes.  Say you wanted to purchase a property for $500k, but only had $25k cash savings, your parents could guarantee an additional $75k against their property to reduce your lending value to 80% of the purchase price.

What are the benefits?

  • Lower deposit required
  • Overall loan is 80% or less - so no Lenders Mortgage Insurance is required
  • Interest rate may be lower - as rates with some lenders are tiered for loans above 80%
  • Some lenders allow you to limit the size of the guarantee

VIDEO: Refinancing with TMFG

VIDEO: Refinancing with TMFG

Refinancing doesn’t only apply to home and investment property, you also have the same scope to refinance commercial property and business lending.

 

People and businesses generally refinance for 1 of 4 reasons:

  • Change in interest rates and fees,
  • Debt consolidation,
  • To access equity in their property or to
  • Improve service and lender satisfaction.

If any of these reasons relate to your current personal or commercial loans, perhaps it is time to look into your refinancing options, and there’s no better place to start than with a qualified professional. A mortgage broker can help you wade through the pros and cons of re-financing, but first let’s look at a few reasons to consider before making the move toward refinancing.

 

Start with TMFG and follow the savings right to settlement

Start with TMFG and follow the savings right to settlement

Chances are, if you have thought about purchasing or refinancing commercial property you may have decided against using a commercial finance broker believing you will save money by going straight to the lender. While it seems like a reasonable belief, this is actually a myth...Here is a quick break down, and only a few of the ways you profit from using a commercial broker, such as TMFG.

Get your future started with TMFG

Speak to one of our consultants today