🏡 Family Guarantee Home Loans: What to Know Before You Get Started

Thinking about buying your first home but struggling with the deposit?

You may have heard of a family guarantee home loan — but what exactly is it, and could it help you step onto the property ladder sooner?

Let’s take a look at what this type of loan involves and why more first home buyers on the Gold Coast are considering it.

💡 What Is a Family Guarantee Home Loan?

In the simplest terms, a Family Guarantee Home Loan (also called a guarantor loan) allows a family member — often a parent — to use the equity in their property as security to help you buy your home. This can reduce or eliminate the need for a large cash deposit.

It’s not a financial gift or a cash contribution. Instead, it’s a form of support that unlocks borrowing potential without the need to save a full 20% deposit.

🤔 Why Do First Home Buyers Consider It?

With rising property prices, especially in popular suburbs across the Gold Coast, saving for a 20% deposit can take years. A family guarantee could help:

• Avoid paying Lenders Mortgage Insurance (LMI)

• Buy sooner instead of continuing to rent

• Enter the market with more flexibility around location and property type

  
  

But just because it’s available doesn’t mean it’s the right choice for everyone.

❓Key Things to Consider Before Proceeding

This type of loan raises important questions — for both the borrower and the guarantor:

• What happens if repayments can’t be made?

• Does the guarantor need to cover the entire loan or just part of it?

• Can the guarantee be removed later on?

• Will the guarantor’s ability to borrow be impacted?

• What legal and financial advice should both parties seek first?

  
  

Every lender handles these differently, and every family situation is unique. That’s why tailored advice is so important.

📍Why This Option Appeals to Gold Coast Buyers

The Gold Coast property market is competitive — especially for young professionals or couples hoping to buy near lifestyle areas like Burleigh Heads, Mermaid Beach, or Palm Beach. Using a family guarantee could be the difference between buying now or waiting years.

That said, these loans come with legal and financial responsibilities for all parties involved, so working with a mortgage broker who understands the fine print is critical.

✅ How Gold Coast Lending Services Can Help

At Gold Coast Lending Services, we’ve helped many local families navigate family guarantee home loans with confidence.

We’ll guide both you and your guarantor through:

• Which banks offer the most flexible policies

• How to structure the loan safely

• What steps are needed to protect everyone involved

You don’t have to figure it out on your own.

📞 Ready to Explore Your Options?

If you’re considering a Family Guarantee Home Loan on the Gold Coast, or simply want to know if you qualify, let’s chat.

👉 Contact Gold Coast Lending Services today and we’ll walk you through your next steps with clarity and care.

Gold Coast Mortgage Broker - Borko Tomic GC Lending Services