Central Coast first home buyers can benefit from a guarantee
Central Coast home loan expert Terry Hinchliffe looks at how first home owners struggling to build a deposit can fast-track their progress by providing a guarantor. Call Terry on 0459 487 396 to learn more or keep reading.
The Central Coast is still a highly affordable region but first home buyers can struggle to save a deposit especially if they are renting while trying to save for a home.
The solution can be to provide a guarantor. Here’s how it works.
Several valuable advantages
A guarantor, usually a parent who owns their home, offers the equity in their place as security for your Central Coast home loan. This offers a number of important advantages.
First, having a guarantor can sidestep the need to show genuine savings – and have a sizeable deposit, two factors that can be especially challenging if you are renting while saving for your first home.
In addition, providing a guarantor can mean avoiding lenders mortgage insurance (LMI). As the cost of LMI can run into thousands of dollars (and it protects the lender not the home owner), this is definitely an expense worth bypassing where possible.
Central Coast home loans tailored to guarantees
In recent years, a number of lenders have developed home loan products that cater to first home buyers using a guarantor.
For instance, a guarantor can have the option to restrict their guarantee to a set percentage of the first home buyer’s loan. Once this portion of the loan has been paid down, the guarantor is released from their responsibility. It’s a real plus for older parents who may be concerned about jeopardising their financial security to support an adult child’s dream of buying a first home.
Different options for first home buyers on the Central Coast
The important thing is that buying your Central Coast first home doesn’t have to involve stumping up a 20% deposit. There are ways to get into the market with far less, and as property values rise on the Central Coast, these different avenues are worth exploring.
Rather than give up on the goal of buying a first home, it makes far more sense to speak to a Central Coast mortgage broker like myself to know exactly where you stand. I can explain a range of different options that you may not be aware of.
Call me today on 0459 487 396 to find out more about using a guarantor for your Central Coast home loan. Or email your questions to firstname.lastname@example.org. I look forward to helping you make that first important step on the Central Coast property ladder.