Understanding Family Security Guarantor Loans
For many buyers, saving a full 20 per cent deposit is the largest hurdle to homeownership. A family guarantor loan offers a practical solution by allowing a close family member — typically parents — to offer a limited portion of their own home equity as security for your loan. This additional security reduces the lender's risk, allowing you to borrow up to 100 per cent of the purchase price plus costs while completely avoiding Lenders Mortgage Insurance (LMI) fees.
While a guarantor structure accelerates your property purchase, it is important to understand the responsibilities involved. A guarantor does not make monthly loan repayments, but they do accept legal financial liability for the guaranteed portion of debt if default occurs. We ensure both borrowers and family guarantors receive clear, transparent information. Guarantors can usually be released once the primary loan balance drops to 80 per cent or less of the property's market value
Accessing Government-Backed 2% & 5% Deposit Initiatives
If a family guarantor is not an option, federal government support schemes provide alternative low-deposit pathways. Under the First Home Guarantee, eligible buyers can secure a home with a 5 per cent deposit without paying LMI (capped at $900,000 in Adelaide metro and $500,000 in regional SA). For single parents or single legal guardians, the Family Home Guarantee allows eligible applicants to purchase a home with as little as a 2 per cent deposit without LMI.
Crucially, the Family Home Guarantee does not require applicants to be first-time buyers, provided they do not currently own any real estate. At Credoleap Finance, our mortgage broking guidance is completely fee-free. We evaluate your eligibility across both family guarantor structures and government guarantee schemes across our 40+ lenders to find the safest, most cost-effective path to owning your home.
Comparing Family & Low-Deposit Options
Family Security Guarantee
Utilise parental property equity to borrow up to 100% of purchase costs and completely eliminate LMI.
2% Family Home Guarantee
Single parents or guardians can purchase with a 2% deposit and zero LMI, with no first-home buyer restriction.
5% First Home Guarantee
Eligible buyers enter the market with a 5% deposit and zero LMI (Adelaide price cap $900,000).
100% Fee-Free Guidance
We compare 40+ lenders to structure the lowest-risk deposit pathway for you and your family at zero cost.
FAQ Guarantor & Family Home Guarantee
A guarantor offers a portion of their property equity as security. While they do not make monthly repayments, they are legally responsible for the guaranteed debt portion if the primary borrower defaults.
Single parents or single legal guardians with dependent children qualify. Applicants do not need to be first-time buyers, provided they do not hold an interest in any other property at settlement.
Once your loan balance drops to 80 per cent or less of the property's market value — through loan repayments or market growth — you can apply to release the guarantor from the mortgage.
No, but parents must have sufficient usable equity in their property to cover the security guarantee required by the lender.
Our mortgage broking service is 100 per cent fee-free for clients. We are paid by the selected lender upon settlement, providing transparent guidance at zero direct cost.