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Know your finances

For home buyers struggling to break into the market, guarantor home loans can be a great option for reaching that first rung on the property ladder.

Before you get started on this journey, however, it’s important for you to have a precise knowledge of your current and future financial situation.

What will your deposit be?

For most home buyers nowadays (particularly in major cities), the large deposit amount required is the biggest stumbling block. Before you reach out to your guarantor for help with your deposit amount, get an idea of the property price range you’ll be buying in, and what your deposit will need to be.

Generally, a 20% deposit is required to avoid paying Lender’s Mortgage Insurance. Once you know this deposit figure, you can compare it against your deposit savings to know how much your guarantor will be committing to.

Read our how-to guide on deposit saving

What will your repayments be?

With your property price range in mind, you can then go ahead and calculate what your ongoing repayments will be, once your loan is approved. Knowing this figure now is vital – If you are asking your guarantor to help with securing your loan, your guarantor’s property may be at risk if you begin to default on your repayments.

Make sure you don’t get in over your head early, and avoid disappointment later.

Use our home loans repayments calculator

Secure your guarantor

Once you have a clearer picture of the financial situation, you should have a chat with your potential guarantor. Most buyers who opt for a guarantor loan reach out to parents or family.

It’s important that both parties understand the pros and cons of guarantor (or family pledge) loans.

Our Family Pledge Loan

Guarantor finances

Just as it helps your guarantor’s peace of mind to know your financial situation is secure, as the buyer, you should make yourself aware of the financial situation of your guarantor. Transparency is key if this relationship is to work.

Family matters

The closer you are to your guarantor, the more likely they are to help you with your loan, but in the event that the guarantor relationship breaks down, make sure you’re both able to work together so that both parties are protected.

Legal advice

Once you and your guarantor have agreed to terms, make sure you run the situation past your legal or financial professional so that both parties fully understand the deal.

Talk to the experts

When you and your guarantor are at a stage where you’re ready to apply, make sure you speak to an expert lender.

At Greater Bank, we’re renowned for our responsible lending practices, and with your best interests at heart, we’ll walk you through your options when it comes to guarantor or family pledge loans.

With competitive interest rates, and a range of simple, helpful loan products to choose from, a Greater Bank lender will be with you every step of the way

Get the right cover

Once you’ve settled, and you’re handed the keys to your brand new home, you should re-consider your level of insurance to make sure both your biggest asset and your guarantor are covered.

Get a quote Home and Contents Insurance

Compare Home Loans

Compare 5 products
Featured rate
Great Rate Home Loan
Our simple, low rate loan that’s perfect if you’re after great value and no ongoing fees. Our Great Rate loan lives up to its name and offers flexible repayment and loan term options.
Ultimate Home Loan
Our ultimate in loans. Our Ultimate Home Loan offers the flexibility of fixed or variable rate, or a mixture of both. What's more, it features a linked offset account and free redraw available around the clock via online banking.
Line of Credit
Our Line of Credit helps you make the most of the equity in your home. Great if you’re thinking about renovating, investing, or just want more flexibility.
Ultimate Investment Home Loan
Our Ultimate Investment loan combines great value with a range of extra products designed to make investing easier.
Great Rate Investment Home Loan
With low-interest rates and no monthly or annual fees, we've made investment simple.
Interest rate 1.59 %# p.a.
Comparison rate 2.10 %^ p.a.
~2 year fixed discounted revert rate, owner occupied, principal and interest
Interest Rate 1.59 %# p.a.
Comparison rate 2.99 %^ p.a.
~2 year fixed discounted revert rate, owner occupied, principal and interest
Interest rate 3.90 % p.a.
Ultimate Line of Credit home loan base rate
Interest rate 1.89 %# p.a.
Comparison rate 3.14 %^ p.a.
~1 year fixed discounted revert rate, principal and interest
Interest rate 1.99 %# p.a.
Comparison rate 2.25 %^ p.a.
~2 year fixed discounted revert rate, principal and interest
Key Features
Great if you want a low-rate no-frills home loan.
Key Features
Great if you want a packaged home loan with a low rate and added benefits.
Key Features
Great if you want a continuous credit facility to access the equity in your home.
Key Features
Great if you want a great value packaged loan to invest in property.
Key Features
Great if you want a simple, no-nonsense investment loan with competitive rates.
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Yes. Available once loan reverts to a variable interest rate.
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$395 p.a. Package fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20%-25% dependent on security taken
Maximum loan term
N/A
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$10 per month
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Yes. Available once loan reverts to a variable interest rate.
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
$395 p.a. Package fee
Interest only available
Fixed rates available
Minimum deposit required (without requiring mortgage insurance or a Family Pledge)
20% of purchase price (plus costs)
Maximum loan term
30 years
Parental guarantee available
Property location
NSW, ACT & QLD
Multiple offset accounts
Free redraw online
Additional repayments
Split loan option
Can be used for land & construction (variable rates only)
Can be used for refinance
Fast refi
Available if self employed
Repayment holiday
Ongoing fee
Enquire now Enquire now Great Rate Home Loan Enquire now Enquire now Ultimate Home Loan Enquire now Enquire now Line of Credit Enquire now Enquire now Ultimate Investment Loan Enquire now Enquire now Great Rate Investment Loan

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Conditions, fees and charges apply to all loans. Subject to meeting Greater Bank's lending criteria. Greater Bank Limited ABN 88 087 651 956. AFSL/Australian credit licence No. 237476.

~At the end of the fixed rate period customers can chose to re-fix their loan for another fixed rate period or let the loan revert to the applicable variable interest rate based on the loan and repayment type.

^Comparison rate is based on $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

#Discounted rates include a discount on Home Loans of $150,000 or over and for owner occupied Home Loans with an LVR 90% or below and for investment Home Loan with an LVR 80% or below and apply to new borrowings only. Discounted rate not available for Line of Credit facilities.

+Additional costs may apply if your loan has a fixed rate.

All new interest-only home loans, attract a 0.10% p.a. margin above the applicable Principal and Interest base rate. All new Line of Credit home loans, attract a 0.10% p.a. margin above the applicable Line of Credit base rate. The all-up interest rate which includes any margins, will be set out in your credit contract. View our Terms and Conditions.