As a mortgage broker, we see many first-time homebuyers face the hurdle of saving a sizable deposit. While a 20% deposit is often seen as the golden standard, it can feel like a distant goal, especially in today’s market. But what if we told you there’s a way to bridge that gap and get your foot on the property ladder sooner? 

What is a guarantor?

Think of a guarantor as your “financial wingman.” This is usually a close family member, like a parent or sibling, who agrees to use the equity in their own home to support your loan application. This essentially provides lenders with additional security, making them more likely to approve your loan even with a lower deposit.

Benefits of using a guarantor:

  • Lower deposit requirement: With a guarantor, you may be able to borrow up to 95% of the property value, significantly reducing the amount of your upfront deposit.
  • Avoid Lenders Mortgage Insurance (LMI): LMI is an extra cost added to loans with a deposit less than 20%. Using a guarantor can help you dodge this expense, saving you thousands of dollars in the long run.
  • Potentially lower interest rates: Some lenders reward the added security of a guarantor with more competitive interest rates, further lowering your monthly loan repayments.

It’s crucial to understand that being a guarantor is a serious commitment. If you can’t meet your loan repayments, the responsibility falls on your guarantor to cover the outstanding balance. This can have significant financial and emotional consequences for both parties, so open communication and transparency are key.

Don’t navigate this alone

Buying a home is a life-changing decision. As national award-winning brokers, we’re here to guide you through the entire process, including exploring the pros and cons of using a guarantor. 

Together, we can assess your individual circumstances, financial goals, and risk tolerance to determine if this approach is the right fit for you.

Don’t let a lack of a large deposit hold you back from owning your dream home. Let’s chat and see if a guarantor could be the key that unlocks your path to homeownership.


We’re a family-owned business with around 8 staff, 15+ years experience and more than $500M of approved loans. By taking time to understand your requirements, we help make your dreams come true with caring, professional service.

Our team of specialists including Gold Coast Finance Brokers, Medical Mortgage Brokers, Varsity Lakes Mortgage Brokers, Gold Coast Mortgage Brokers and Southport Mortgage Brokers  will find the right loan for you.


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This page provides generic information only; it was created without considering your individual goals, requirements, or financial condition. Before accepting any offer or product, we advise you to think about whether it is appropriate for your situation and to assess your entire financial status. It is not intended to be legal, tax, or financial advice, and you should always obtain a professional's opinion regarding your particular situation. All loan products are subject to lender requirements and approval. Fees, terms and conditions apply.

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