Family Pledge Home Loan St George
How a Family Pledge Home Loan from St George Might Help With Your Home Ownership Dreams
Are you one of the many Australians looking for a way around strict lending requirements for your mortgage? Many lenders have relaxed their lending criteria in recent times, allowing aspiring home owners to borrow without a substantial deposit or genuine savings, through products such as a family pledge home loan. St George offers this kind of loan, which allows you to borrow without a deposit, as long as you have a family member who acts as a guarantor to secure your loan.
Advantages of a family pledge home loan
With a family pledge home loan from St George, there is no need to save for months or even years for a deposit before entering the property market. You can also save money by not having to arrange for lenders mortgage insurance. If you are paying a significant amount of your income on rent, you might be much better off by buying, and it’s worth considering whether a family pledge home loan from St George is the right mortgage product for your circumstances.
Are you eligible?
To be eligible for a family pledge home loan, you will need to satisfy a number of requirements, including:
- Income. Your monthly or periodic income should be more than enough to cover your periodic mortgage repayments.
- Credit history. A clean credit history with no defaults is usually required. If you had defaults in the past, these should have been paid off in full.
- Employment. You should be out of your probationary period and be able to demonstrate a stable employment history for the past year, or the past several years if possible.
- Property. The lender will also consider the type of property you are purchasing. The type of property purchased should be residential, not commercial property.
- Asset position. Lenders will usually factor in your asset position as part of your application. Your total assets should be more than your total liabilities.
If you are eligible, the next step is to ascertain whether your family member is eligible.
Who can guarantee your home loan?
Your guarantor should also satisfy the basic lending criteria for this type of loan. These might include the following:
- Your proposed guarantor needs to be an immediate family member, such as a parent or sibling. Cousins are usually not permitted to be guarantors.
- Your guarantor should own property in Australia. They should have enough equity built up in their property to cover at least 20% of your purchase price, or they will need to offer the same amount in a lump cash sum to guarantee your loan.
- Your guarantor needs to have a solid credit rating.
Paying for extra costs
In many cases, your family pledge home loan can itself fund extra costs associated with borrowing and purchasing your home. These costs include stamp duty and legal and conveyancing fees.
How to apply
If you are interested in applying for a family pledge home loan from St George, we can assist you. Contact us today for a discussion. Our consultants will be happy to take you through the process and check your eligibility for a family pledge loan. By getting started as soon as possible, you can act quickly to secure the property of your dreams.