Let Hausing Mortgages find you the best Family Pledge home loan.
Family Pledge mortgages allow a family member of relative who has strong equity in their property to act as a guarantor for your mortgage. The amount of equity offered by the family member may mean that you can borrow enough to purchase the home of your dreams.
There are positives and negatives to Family Pledge mortgage solutions that all borrowers and guarantors must be aware of. Such a mortgage allows you to:
- Purchase a property without saving for, or providing, a deposit.
- Borrow up to 110% of the property price.
- Refinance later to repay the guarantor once the property has developed enough equity.
Having a guarantor to provide the deposit for a Family Pledge mortgage is the first step to getting your foot in the door of a property in Australia, however, like any loan the mortgagee will need to ensure they can service the mortgage repayments and financially be able to cover property maintenance over time.
Risks and Rewards of Family Pledge mortgages
There are certain risks as well. Any person or couple wishing to explore a Family Pledge style mortgage product must consider the risk of family being involved in major financial decisions. Hausing Mortgages dutifully reminds clients that relationships can change over time, and strong relationships may be negatively impacted if something goes wrong with the property in future. Despite this, Family Pledge mortgages remain a great way for family to help their younger generation secure a property.
To discuss Family Pledge mortgages in greater detail, contact us and we will be more than happy to advise you on the options available from different lenders.
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