Should I use a guarantor or save my own deposit for a home?

C

CapnMechanist

New Member
Guarantor
Hey blokes—pretty fortunate spot (in my eyes anyway) havin' a guarantor for my first property.

What’s the pros and cons?

Worth havin’ someone go guarantor or best save my own deposit? Or use some savings + guarantor?

Or avoid it altogether?

Turnin’ 28 soon, wanna get into the market while st ill young-ish and make the most of it—but worried there’s cons nobody’s tellin’ me about.

Cheers
 
My wife and I had a guarantor for our first place. Once we'd paid down enough and built up enough equity, we refinanced and got the guarantor removed from the title. It went smoothly for us.
 
No cons.

Don't disappoint your guarantor. They obviously love you dearly. They want you to get ahead.

Best to get into the market as soon as possible.

Having a guarantor doesn't change anything. Just means they're left with the mess if you can't keep up with repayments.
 
I used a guarantor. I understand the mechanics. I used my deposit and a guarantor to lower my rates and clear me for the property. Removing the guarantor is easy just need equity. The only con: if you can't pay, they must cover the shortfall.
 
Had no help for my first property.
Doing it yourself is overrated.
Take any help you can.
Get in a position to help your kids one day.

Who gives a fuck what people think.

The guarantee will put themselves on the line if you can’t make payments.
Make sure you can.

Try stay in the FHB brackets for your area.
No stamp duty, 5% deposit, super saver scheme and no LMI.

If you can do it without having a partner on the mortgage and you’re not married, then they can do the same benefits when they can buy another small place.
 
Honestly, I've been grappling with this: you can't refinance without paying LMI until the price has grown enough to hit 80% LVR that's a real catch for me. The 5% deposit scheme for first home buyers is another great option too, something I've seriously looked into.
 
My mum did it for me for my investment property close to 18 months in and I was a whisker away from being able to release her... so if you can do it, great but it will take some time to get that 20% growth either let the market do its thing or pay it down, or a combination of both. But go for it mate if the option is there... and the guarantors understand their risks and obligations. Good luck
 
tbh, no downside to it the guarantor (probs your parents) are taking all the risk, so don't disappoint them. You'll get better rates with a guarantor, and even better rates with a bigger deposit.
 
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