Are there options for being a guarantor to help your kids buying their first home for only part of their loan, say for the deposit only, instead of their whole loan?

Hi Lou,

A family/pledge or guarantor using up to 20-50% (depending on lender) of the equity in your home can be used to cover your kids deposit. Effectively borrowing 100% of the property price. They can go even beyond that and finance stamp duty if you have enough equity in your home.

Kind regards

Hi Lou
There are options for family members to assist with a first time home buyer .
In your question as parents you could put your property up as security so that the kids could use this to borrow enough money for their new home .
They can go a split loan of 80/20 with the 80% secured by the new purchase and the 20% plus costs secured by the new purchase AND the parents property.
Of course the parents must have enough equity in their property to do this and also seek independent financial and/or legal advice

THE KIDS are responsible for BOTH debts as far as servicing the loans go. The parents income does not come
Into it.

A good broker can go through all the pros and cons with you

Hope this helps Lou
Happy to chat anytime

Most decent guarantor loans (or Family Pledge as some banks call them) don't require the guarantor risking their entire home.
These days they're known as a 'limited guarantee', with most of them simply covering any amount up to 20% of the purchase price, plus costs, less whatever deposit the borrowers (kids?) have available.
There are more variations, but largely that covers most situations.

DO NOT g/tee any loans
use a gift option or a family pledge loan
A good broker will have access to these products

Sure! What a great thing to be able to do for your kids...there a a couple of different ways , one is family pledge and your needs need to be assessed at the same time as your kids to establish which facility and Lender is the right fit for you and your kids as each facility is different and assessed differently by each bank. 😄