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Other options to an Offset loan
A guarantor is another person/s or entity that agrees to be responsible for a loan applicant’s debt, if the applicant fails to pay the lender. Sounds scary? Well, that will depend on a lot of factors that we will be covering in this section.
There are different structures for guarantor home loans. Some lenders require the guarantor to be responsible until the entire debt is repaid in full.
Some lenders also provide a facility called a limited guarantee. Under a limited guarantee, once the applicant has paid their loan balance down to 80% of the home’s value, the guarantor can be released.
For the purposes of this information page, we will only be discussing the limited guarantee, as that is normally the facility that we would try to obtain for our clients.
Most lenders will only use a guarantor who is a parent or sibling, however at the time of writing this article, we have access to one particular lender who will now use “anyone” to be a guarantor, provided that they meet the expectations of the lender.
We would expect the other lenders to get on board with similar features in the near future as none of them like to lose business. Here are some of the features that this particular lender is offering:
There are several benefits to look at when a guarantor home loan is being considered. The benefits of this type of loan are not just for first home buyers. This loan can benefit anyone borrowing over 80% of their properties value, provided that they qualify.
There are limits to what you can do when using a guarantor, please speak with your mortgage broker about your options.
This loan may be suitable for the following types of scenarios:
There are many options available:
These are your simple steps to apply for a loan:
NOTE: These pages are of general advice in nature. They have not taken into account your specific needs and objectives and are therefore designed to provide general information only. Before acting on any of the information contained on our website please have your Mortgage Broker assist you in determining the right product for your individual needs.
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FAQ
Your journey with us begins by completing our contact form or reaching out to us directly by phone. Our team is ready to assist you through the process. Please note that an initial phone call is required for all applicants regardless. This allows your mortgage broker to understand your needs and objectives and determine how we can best assist you. This call is also a valuable opportunity for you to ask questions and gain a deeper understanding of the process.
You may be wondering why you should use a mortgage broker instead of going directly to a lender.
The main benefit of using a mortgage broker is that they can provide you with a wider range of options. This means you can choose a loan that is cheaper, has a better structure, or is from a lender who is more likely to approve your application.
Not all lenders are the same, and some are better than others in certain areas. A mortgage broker can help you find the best lender and loan for your specific needs. And, since there are no fees to you for using a mortgage broker for a standard home loan, it makes sense to have someone on your side to guide you through the process.
We receive an upfront commission from lenders - only when a loan successfully settles. Additionally, we receive ongoing trail commissions for providing continued support to our clients.
To offer loans from a specific lender, we undergo lender accreditation training. This allows us to work directly with clients on the lender's behalf, completing the tasks that would typically be handled at a branch. We are responsible for sourcing our own clients and matching them with the lender that best suits their needs, and we also have a partnership with an aggregator as detailed below, which allows us to access dozens of lenders.
We partner with an aggregation group (Aggregator), a company that aligns itself with dozens of lenders and banks. Illawarra Mortgage brokers Aggregator partner is Connective Mortgage Aggregator.
This aggregator gives us access to a wider range of lenders and advanced software, enabling us to serve our clients more effectively. The Aggregator receives a monthly payment taken directly from our commission income for each loan. Working with an Aggregator is standard practice for mortgage brokers and is a requirement in this industry.
We offer comprehensive mortgage broker services tailored to your specific needs. Whether you're looking for a home loan, a first home buyer loan, a loan for a second property or investment, an upgrade to your existing home, or refinancing options, we can help.
We also work with lenders who offer guarantor options, allowing parents to assist their children in purchasing a property. View our home loans.
Illawarra Mortgage Brokers holds an Australian Credit License (ACL Number 385841)and maintains full membership with the Mortgage and Finance Association of Australia. Our brokers are required to complete 30 hours of professional development training each year to stay current on all lending practices.
The minimum qualification for our brokers – They must have a Certificate IV in Finance and Mortgage Broking and also have a Diploma in Finance and Mortgage Broking.
The business owner Peter Economos is our most senior broker. He became a mortgage broker in 1988. After working with another mortgage company for two years, he then established Illawarra Mortgage Brokers, in March 2000.
Illawarra Mortgage Brokers has also been the recipient of industry excellence awards, including the 2019 Connective Home Loans, Mortgage Broker of the Year for NSW.
We hope that this information provides you with the assurance of our professionalism and expertise.
We assist a wide range of clients with their property finance needs. Whether you're looking to purchase a home or investment property, refinance an existing loan, or explore other property-related lending options, we are here to help.
We work with clients from all income backgrounds, including salary and wage earners, self-employed individuals, contractors, self-funded retirees, and more.
Please advise if you have any specific questions about our services. We would be happy to discuss your individual needs and circumstances.
Our access to dozens of lenders allows us to offer you a wider range of lending options than brokers with smaller lender panels and therefore limited lender options. With over 25 years of experience, we can also provide expert guidance on loan structuring and interest-saving strategies designed to save you money.
Furthermore, we pride ourselves on our personalized approach, product expertise, and commitment to excellence. These qualities distinguish us from other mortgage brokers in the Illawarra.
During our initial conversation, we can usually determine your likelihood of being approved for a home loan. However, please note that only the lender you choose to apply with can grant final approval. Our role is to present you with options that offer the strongest possibility of securing your home loan.
Regarding our meeting frequency, we tailor that to your specific needs and preferences. We are always available to assist you, so please don't hesitate to reach out for any reason. Additionally, we do not charge any fees for ongoing support.
