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Family Guarantee Loans

Family Guarantee Loans

  July 27, 2017

Family Guarantee Loans

Many parents get just as excited about their children’s first home purchase as the “kids” themselves. They’re often involved in helping select the property and providing advice. A facility is available which enables parents to help with the purchase at no direct cost to themselves. A “Family Guarantee Loan” enables parents, or another family member, to use their own home as security for up to 20% of the new home.

This can be an invaluable aid to younger family members making the big step of buying a home. In particular:

  • The buyers may be able to afford a more appropriate property for their needs.
  • It may enable them to purchase at a time when they don’t have a deposit available.
  • It will avoid the need to pay costly mortgage insurance (usually required when borrowing greater than 80% of the purchase price).
  • The liability of the parents (or other family relationship) is limited to 20% of the purchase price and this will be reduced as the mortgage is reduced.

This is an easy and cost-free way to assist your family into their first home. We help many families with these types of loans, so please give us a call for more information.

Have a question?

MC Mortgage Solutions would love the opportunity to discuss your circumstances with you. Whether you have found a house or are just in the planning stages it's never to early or late to make sure your finance is right for you.

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MC Mortgage Solutions

MC Mortgages was established with one clear goal: to be more than just brokers. With this compelling vision in mind, we have created a brokerage that is focused on looking beyond the customer’s initial request and taking a holistic approach to all their needs.

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