Saving for a deposit isn’t easy, especially if you want to save enough to avoid Mortgage Insurance. If your parents are willing and able to help you buy your first home, then perhaps a Family Equity Loan is the way to go.
A ‘Family Equity Loan’ or ‘Limited Guarantor Loan’ is a great way of buying your house sooner and avoiding Mortgage Insurance. Your parents are able help you without being left out of pocket because they’re using the equity in their property to cover a portion of the loan. However, if you can’t repay your mortgage, your parents would be required to pay the unpaid amount of the loan. In a worst-case scenario, this could force them to sell their home to cover your debt.
It gives you the freedom to concentrate on finding the right property – and keeps your deposit savings earning interest, right up until the day of settlement. Your Lender can arrange this as part of your pre-approval.