Buy now. With a little help from family.
Enter the property market years sooner with a guarantor loan. No deposit? No LMI? No problem.
How "The Bank of Mum & Dad" works.
You service the loan
You (the child) are 100% responsible for the monthly repayments. You prove your income can handle the debt.
They secure the deposit
Your parents use a small portion of their home's equity to guarantee the 20% deposit. No cash changes hands.
You save thousands
Because you now have a "20% deposit" via equity, you pay ZERO Lenders Mortgage Insurance — saving up to $30k.
Safety mechanisms for parents.
We know parents worry about their own home. That's why we structure loans with specific protections.
Limited guarantee
Parents only guarantee the 20% deposit gap — not the whole loan. Their liability is capped at that specific amount.
Standalone security
We keep the properties on separate titles where possible, ensuring clarity on which bank holds which security.
The exit strategy
This is not a life sentence. We plan the "release" of the guarantor from day one.
Buyers ready to own — with a little family backing.
If you can handle the repayments but the deposit is the wall, a family guarantee is often the way over it.
First home buyers
Earning enough to repay a loan but years off a 20% deposit? A parent's equity can get you in now, often with no LMI.
Strong income, small deposit
Good, stable income but little saved? A guarantor bridges the deposit gap so you're not paying rent while prices move.
Parents who want to help safely
Want to help your kids without handing over cash? A limited guarantee lets you support them with built-in protections and a clear exit.
How a family guarantee actually works.
A guarantor (or "family pledge") loan lets a family member use the equity in their own property as additional security for part of yours. It can get you into the market with little or no cash deposit and often avoid Lenders Mortgage Insurance (LMI) — but it only works well when it's structured to protect the guarantor as much as the buyer.
A limited guarantee — not the whole loan
The guarantor doesn't guarantee your entire mortgage. We structure a limited guarantee so they're only responsible for a specific portion — typically the 20% deposit gap — with their liability capped at that amount. No cash changes hands; they pledge equity, not money, and you remain responsible for the repayments.
Who can be a guarantor
Most lenders require an immediate family member — usually a parent — who owns property with enough available equity; some accept siblings or grandparents. Because their home is involved, we always recommend the guarantor gets independent legal advice before signing.
The exit strategy comes first
A guarantee isn't forever. As your property grows in value and you pay down the loan — often within 3–5 years — we refinance to release the guarantor entirely. We plan that exit from day one.
New to all this? Our first home buyer guide and deposit savings planner are a good place to start, and the deposit guide in our Knowledge Hub explains every low-deposit path.
Your questions, answered.
What is a guarantor home loan?
A guarantor home loan lets a family member — usually a parent — use the equity in their own property as additional security for part of your loan. It can let you buy with little or no cash deposit and often avoid Lenders Mortgage Insurance (LMI), getting you into the market years sooner.
Who can be a guarantor?
Most lenders require a guarantor to be an immediate family member, usually a parent, who owns property with enough available equity. Some lenders also accept siblings or grandparents. The guarantor doesn't give you cash; they pledge a limited portion of their property's equity as security.
How much can a guarantor loan save me?
By using a family guarantee to cover the deposit gap, you can avoid LMI — which can be $10,000 to $30,000 on a low-deposit loan — and buy without years of extra saving. You still need to show you can service the repayments.
Is the guarantor liable for my whole loan?
Usually not. We structure a limited guarantee, so the guarantor is only responsible for a specific portion — typically the 20% deposit gap — not your entire loan. Their liability is capped at that agreed amount.
Can a guarantor be released later?
Yes. The guarantee isn't permanent. Once your property has grown in value and you've paid down some of the loan — often within 3 to 5 years — we can refinance to remove the guarantor entirely. We plan that exit from day one.
Does a guarantor need to provide cash?
No. A guarantor pledges equity in their property as security; no money changes hands. They are not gifting you a deposit or making your repayments — you remain responsible for servicing the loan.
What are the risks for the guarantor?
If you can't repay the loan and the lender can't recover the shortfall from your property, the guarantor's pledged equity is at risk up to the limited-guarantee amount. That's why we use a limited guarantee, keep titles clear and plan an exit — and we always recommend the guarantor get independent legal advice.
The exit strategy.
Our goal is to remove the guarantor as soon as possible. Once your property grows in value and you pay down some debt (usually 3–5 years), we refinance the loan to stand on its own. We aim to release Mum & Dad by 2029–2031.
Discuss a family pledge