Family Guarantee

Heritage's Family Guarantee loan is a way for immediate family members, like parents, to help you purchase a home without them actually providing the cash for a deposit.

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). The LVR is the loan amount divided by the value of your property. By using the equity in your family member's home and reducing the LVR to 80%, you could save a significant amount of money by avoiding the need to pay Lender's Mortgage Insurance.  So you get into your home faster, with help from your family.

What are the key features?

  • 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.
  • 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.
  • 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.

Am I eligible?

  • Family members who can provide the Family Guarantee include parents, siblings, sons and daughters.
  • You can use a Heritage Family Guarantee to buy a home and you don't have to be a first home buyer to be eligible.
  • Individual applicants are restricted to a maximum of one parental guarantee/family guarantee borrowing.
  • Owner occupied loans only


What Home Loans are eligible?

The Family Guarantee is available on a range of Heritage Home Loan products including;

* Home loan comparison rate based on a $150,000 loan over 25 years.  Fixed loan comparison rate applies only for loans with an LVR of 80% or less and a loan amount of $150,000 to $249,999.  WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Interest rates are on a per annum basis. Rates are correct as stated and subject to change without notice. Rates shown are for new loans and do not apply to switches or internal refinances.

Home Advantage Variable rates include discounts shown from the Standard Variable rate. Home Advantage Living Equity rates include discounts from the Living Equity rate. Discounts are based on total lending in the package. Discount Variable LVR rates are for new lending and include discounts from the Discount Variable Loan Rate.  Discounts are not available in conjunction with any other interest rate discount or special offer. All fixed rates are fixed for the period stated and revert to the variable rate applying at expiration of the fixed term. To approved applicants only. Conditions, criteria and fees apply.

Loan to Value Ratio (LVR) is the loan amount divided by the value of your security property (determined by Heritage Bank at assessment), multiplied by 100. Owner Occupied loans have a maximum LVR of 95%, Investment loans have a maximum LVR of 80% and Living Equity has a maximum LVR of 80%. Heritage is not accepting any new investment applications until further notice.

This advice has been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs.

Generate a personalised Key Fact Sheet based on your loan amount, term and repayments. This tool is provided to help you compare home loans from Heritage with other financial institutions.