Are you ready to buy your first
home but don' have the savings?
You might be able to make the move sooner than you
think.
Many
people think that you need to have saved a huge sum of money before you buy
your home, but this isn’t always true. To get around the banks' normal savings
requirements, you might be able to secure your home loan with the help of your
parents.
If you don't have the savings, but you're ready to buy your home speak to your parents about using a Family Equity
Guarantee. Basically how a family guarantee works is that the lender looks at
your parents’ home and assesses how much useable equity they have within that property. If they have enough equity to guarantee 20% of the
purchase price of your property they can act as guarantors on your loan!
The
benefits of using a family guarantor:
You don’t have to pay a deposit!
A family guarantor
enables you to secure your loan without paying a deposit. If you have money set
aside to put towards your home, however, we suggest for most people that you
still put this down as a deposit.
You don’t have to pay Lenders Mortgage Insurance!
The equity in your
parents’ home acts as insurance to the lender in case you are unable to pay
back your loan. This means that you don’t have to pay the insurance yourself.
This can save you thousands.
You get into your new home sooner!
If you have the income to
meet your loan repayments then stop paying off someone else’s mortgage through
your weekly rent. Speak to your parents about a family guarantor option and
start paying off your own mortgage and furthering your financial position.
As
always there are other considerations and it is best for both you and your
parents to seek advice before moving forward with this option.
All
About Loans can give you lending advice and lay out all your options
for you for free!
You
could have the keys to your first home much sooner than you think.
Call
0732525208 to get your planning started!
Don Farquharson,
Loan Solution Expert
Owner & Principal Lender of All About Loans
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