Your family members can use the equity in their own home to provide additional security for part of your loan amount. This solution reduces your loan to value ratio (LVR).
By increasing your security through a guarantee from your family, you will reduce the loan value ratio of your loan to 80% or less and avoid paying Lender's Mortgage Insurance.
The guarantee will be released once the limited amount of the guarantee is paid in full or (subject to approval) when the standard LVR requirements are achieved. The guarantor or borrower may request a revaluation at any time to confirm the LVR, subject to the payment of the valuation fee.
First home buyers who are also owner occupiers may be eligible for up to $50,000 cash in addition to the loan amount to use for home improvements.
You can consolidate minor debts into the loan amount, if they are less than 5% of the purchase price.
Standard guarantee and legal fees will apply. This includes land titles registration fees and the cost of obtaining Independent Legal Advice.
The guarantor can be a new or existing Heritage Home Loan customer or even retain their home loan with their existing home loan provider.