When buying a home in Perth, you will typically need to put down a minimum 5 per cent deposit to get approved for a loan. This requirement can prove challenging if you’re still paying rent. Fortunately, Perth home builders like WOW! Homes say your family can help you buy your new home by acting as a guarantor. Here’s what you need to know:
What is a guarantor?
Many lenders and banks will be more willing to help if you have a guarantor to back you up. A guarantor is anyone who can offer the assurance of loan repayment (but only a portion of the loan) if the borrower fails to fulfil his commitment. This lowers the risk for the lender, who may even decide to lend you as much as 100% of the property’s purchase and construction price.