Home loan comparison

Lender

Variable
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loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
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    HSBC – Home Value Home Loan (Principal and Interest) (LVR < 80%)

      Fixed
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      Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 1 Year

        Variable
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        Beyond Bank – Purple Basic Variable Home Loan (New Customer) (LVR 60%-80%)

          Variable
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          Athena – Straight Up Owner Occupied - Celebrate (LVR 50%-60%) (Principal and Interest)

            Fixed
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            IMB Bank – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR ≤ 80%)

              Variable
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              Liberty Financial – Liberty Low Rate Home Loan (LVR < 95%)

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 25, 2024. View disclaimer.

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                Purchase: Guarantor Home Loan Calculator

                This calculator provides you with an indication of whether a guarantor home loan is an option available to you. Not all lenders provide guarantor home loans. This calculator provides you with a general indication and does not consider the assessment and eligibility requirements of individual lenders.

                Assumptions:

                The calculator does not take into account:

                • The purpose of the guarantor's property
                • Whether the guarantor has income
                • The purpose of the user's loan or property

                The deposit amount is assumed to exclude any upfront costs associated with getting the home loan.

                What is the main benefit of using a guarantor for a home loan?

                If you are unable to save up a 20% home deposit, a guarantor home loan might be a great option to help you buy a property sooner.

                A home loan guarantor is typically a close family member or friend who has agreed to take responsibility for the repayments in the event you default on the loan. It is also common to offer their own property as collateral.

                A guarantor home loan can help you buy a house much sooner because you don’t need to save a big deposit and also means you won’t need to pay Lender’s Mortgage Insurance.

                What type of home loans can I get with a guarantor?

                Some lenders may offer a specific guarantor home loan, and some have this as a feature in their general home loan products. Their terms and conditions and criteria will vary, so it is recommended you confirm with your lender if a guarantor is accepted and what products allow a guarantor.

                Are there any risks or extra costs of using a guarantor for my home loan?

                There are potential risks in using a guarantor for your home loan. The most common risks are: 

                Higher rates and extra fees

                Home loans with guarantors generally have a higher interest rate compared to standard home loans, and some lenders may charge extra fees.

                Missed repayments

                If you are unable to meet multiple loan repayments, the lender may end up selling your property in a worst case scenario. If your property is not enough to cover what you owe, your guarantor will be liable for the difference.

                Borrowing power

                The borrowing power of your guarantor will have an effect on future loans they decide to take out and will likely be able to borrow less money. They will be unable to sell or refinance the property to other lenders they have as security.

                Can I remove the guarantor at a later date?

                If you’ve managed to build up enough equity in your house or if you owe less than 80% of your property’s value, you can apply to remove your guarantor from the loan. However, you may be charged additional fees to remove the guarantor. Removing your guarantor can have benefits such as securing a lower interest rate, which will result in lower loan repayments.

                Who can be a home loan guarantor?

                It may vary per lender who can qualify as your guarantor, however typically immediate family members such as your parent, sibling or partner, can qualify as your guarantor.

                What is the maximum amount a guarantor can lend me to help with my loan?

                It is possible to borrow 100% of the property price with a guarantor. However, the maximum amount you can borrow may depend on your purpose for borrowing, such as if you’re buying your first home, building a house, buying an investment property, or refinancing. It is recommended you check with your lender to see how much you can borrow with a guarantor.

                Guarantor Home Loan FAQs

                Your guarantor could be a relative or friend that has agreed to pay your debts and continue your loan repayments in the event you cannot pay anymore.

                First you’ll need to speak to your lender or mortgage broker to review your financial situation. If you're financially able to support your loan on your own, you'll be able to submit a request to remove your loan guarantor to your lender.

                There are some risks involved, including being liable for the debt in the event the borrow cannot repay their loan, your credit score may be effected if the borrower doesn’t pay their loan on time, and your relationship with the borrower may also be jeopardised in adverse circumstances.

                The guarantor will remain on the loan for the entire loan term, unless the borrower or guarantor applies to be removed early.

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 July 2024.

                ^The addition of offset sub-account means your comparison rate will change.

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