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Guarantor home loan Westpac


Is a Guarantor Home Loan from Westpac an Option for You?


What are your options if you do not have sufficient funds saved up for a deposit, but you want to enter the property market and buy your own home? One possibility is a guarantor home loan. Westpac offers this sort of loan, which can not only allow you to borrow without a deposit, but can also allow you to borrow enough to cover additional fees and costs, such as stamp duty. You and your guarantor will, however, need to make sure that you meet basic eligibility requirements before you consider applying.


What are the key advantages of a guarantor home loan?


By having a guarantor secure your loan, you can borrow in some cases up to as much as 105% of the purchase price of a home – without having to have a deposit in the form of genuine savings.


A guarantor home loan from Westpac might be just right if you are young, and you have a good income, but you don’t have money in the bank, for example.


Another good thing to note about guarantor home loans is that you do not generally need to pay mortgage insurance, which also saves you money.


Am I eligible for a guarantor home loan?


To apply for a guarantor home loan from Westpac, or any other lender, you will usually need to meet some standard eligibility criteria.


These can include demonstrating steady income, having a positive asset profile, and having a good employment history.


  • You usually need to show that you have been employed in your current position or line of work for a reasonable period. You should be out of your probationary period at work.
  • You need to show that you have a good credit history, without defaults. If you do have defaults, you need to show that these have been paid off in full before the lender will consider your application.
  • Your total assets should be greater than your total liabilities.
  • The property you will be purchasing should usually be a residential rather than a commercial property.


Is my guarantor eligible?


Guarantors should have a good credit history. They will need to own property in Australia if your loan is being secured with equity, rather than cash. They should have enough equity in the relevant property to guarantee at least 20% of your loan. Additionally, the guarantor needs to be a family member, such as a parent or a sibling. Cousins are generally not acceptable as guarantors.


Once you have built up sufficient equity in your property, the lender can release your guarantor’s equity back to them.

What if I do not have a guarantor?


It is not always possible for a family member to act as your guarantor. If you’re not lucky enough to have a guarantor, it is worth seeing if you can apply for a loan with a minimum deposit of less than the usual 10 or 20% required. With the relaxing of the genuine savings rule, you might have sufficient funds from non-genuine savings, such as a tax return, or proceeds from the sale of a boat or vehicle, to borrow.


Can I get started today?


If you want to discuss your options for a home loan without a deposit, and find out more about a guarantor home loan from Westpac, contact ABC Mortgages today. We offer a free phone consultation, and we can take you through your eligibility requirements, and each stage of the application process.