First Home Loans & Guarantor Home Loan Solutions
Your trusted mortgage broker for first home buyers seeking the right loan solution
Buying your first home is exciting, but navigating the loan process doesn't have to be complicated. We specialise in helping first home buyers find the perfect loan solution, including guarantor home loans that can help you enter the property market sooner.
- Access to over 60 banks and lenders for competitive options
- Expert guidance on guarantor home loans and family guarantee structures
- Personalised service backed by 900+ five-star Google reviews
What is a Guarantor Home Loan?
Benefits of a Guarantor Loan
A guarantor home loan allows a family member (typically parents or grandparents) to use the equity in their property as additional security for your home loan. This arrangement can help you:
- Avoid Lenders Mortgage Insurance (LMI) even with a smaller deposit
- Increase your borrowing capacity beyond what you could achieve alone
- Enter the property market sooner without waiting to save a full 20% deposit
- Access better interest rates typically reserved for borrowers with larger deposits
How Does a Family Guarantee Work?
With a guarantor home loan, your guarantor uses their property's equity as security for a portion of your loan. This reduces the loan-to-value ratio (LVR) from the lender's perspective, often eliminating the need for LMI and improving your borrowing power.
- The guarantor takes on financial responsibility for the guaranteed portion
- Professional advice is recommended for both the borrower and the guarantor
- Clear exit strategies should be discussed upfront
The Home Loan Process
From initial consultation to settlement, here's how we guide you through securing your first home loan:
- 1. Initial Consultation
We start with a brief chat about your goals and circumstances. This helps us understand whether a standard home loan or a guarantor home loan might suit your needs better. - 2. Loan Research & Recommendations
Using our panel of 60+ lenders, we research and compare options to find loans that match your specific requirements, including guarantor loan products where appropriate. - 3. Application Preparation
We handle the paperwork and documentation, ensuring your application is complete and professionally presented to maximise approval chances. - 4. Pre-Approval Assessment
Once approved, you'll know exactly how much you can borrow. This pre-approval is typically valid for three months, giving you confidence when house hunting. - 5. Property Purchase Support
Found your dream home? We'll manage your loan application through to settlement, keeping you informed every step of the way. - 6. Settlement Day
We coordinate with all parties to ensure a smooth settlement process, so you can focus on celebrating your new home purchase.
Home Loan Types Available
Understanding your options helps you make informed decisions about your first home loan:
Variable Rate Loans
Interest rates can change over the loan term, offering flexibility with features like unlimited additional repayments, redraw facilities, and offset accounts.
Fixed Rate Loans
Lock in your interest rate and repayments for a set period, providing certainty and protection against rate rises during the fixed term.
Split Loans
Combine the benefits of both variable and fixed rates by splitting your loan between the two rate types.
Guarantor Home Loans
Family guarantee loans allow eligible family members to provide additional security, potentially helping you avoid LMI and access better rates with a smaller deposit.
Professional Packages
Discounted rates and waived fees for eligible borrowers, often including other banking products in a bundled package.
Interest-Only Loans
Pay only the interest portion for a set period, though this means the principal balance remains unchanged during this time.
Helpful Calculators
Knowledge empowers better financial decisions. Use these tools to understand your borrowing capacity and potential repayments:
Frequently Asked Questions
We’ve got your questions covered.
How much deposit do I need for a guarantor home loan?
With a guarantor home loan, you may be able to purchase with a smaller deposit or even no deposit in some cases. The guarantor's property equity acts as additional security, potentially eliminating LMI requirements. Each lender has different criteria, so we'll help you understand your specific options.
Who can be a guarantor for my home loan?
Typically, guarantors are immediate family members such as parents, grandparents, or sometimes siblings. They must have sufficient equity in their property and meet the lender's eligibility criteria. Professional advice is recommended for all parties involved.
What are the risks for guarantors?
Guarantors become liable for the guaranteed portion of the loan if you cannot meet repayments. They should seek independent legal and financial advice before agreeing to act as guarantor. We can help explain the structure and recommend appropriate professional advisors.
How do I remove a guarantor from my loan?
Guarantors can typically be removed once you've built sufficient equity in your property (usually 20% or more) or paid down enough of the loan. This process involves a loan variation and property valuation.
Can guarantor home loans help me avoid LMI?
Yes, guarantor home loans often help borrowers avoid Lenders Mortgage Insurance by reducing the effective loan-to-value ratio through the additional security provided by the guarantor's property.
How will you decide which guarantor loan suits my circumstances?
We assess your specific situation, including your deposit, income, and family circumstances. With access to 60+ lenders, we can compare different guarantor loan products and present you with options that match your needs, explaining the pros and cons of each.
Why Choose Mason Finance Group?
Extensive Lender Panel
Our relationships with over 60 banks and lenders mean we can find competitive guarantor home loan options that might not be available directly to consumers.
Personalised Service
Every client receives individual attention. We take time to understand your circumstances and explain complex concepts like family guarantees in plain English.
Proven Track Record
With 900+ five-star Google reviews, our clients consistently rate our service highly for professionalism, communication, and results.
Ongoing Support
Our relationship doesn't end at settlement. We provide ongoing support and can review your loan structure as your circumstances change.