Has anyone used a bank that will consider a private rental as genuine savings for a home loan with a guarantor? We have savings but have dipped in to them a couple times and now we unexpectedly have a garantour for our first home loan
Has anyone used a bank that will consider a private rental as genuine savings for a home loan with a guarantor? We have savings but have dipped in to them a couple times and now we unexpectedly have a garantour for our first home loan
By using this site you agree to our terms. View the Privacy Policy.
11 Replies
You should talk to a broker for this information & guidance and whether you can afford a mortgage in a rising interest rate market, as well as the other expenses of home ownership. Also ensure you & your guarantor understand the risks. It's a massive responsibility for both of you.
Geez, what a Debbie downer, why do you treat people like they know nothing?
Just answer the question.
Op, I know there are banks that do it and so they should, but not sure which ones sorry.
Definitely see a broker, it’s free and they will get the best loan for your individual circumstances.
Good luck on your journey to home ownership and FYI, interests are so low, it will be years before they reach “normal” levels, plus banks have to stress test your serviceability with higher rates before they approve.
In this climate, with the introduction of responsible lending laws, you won’t get approved for a loan you can’t afford.
I did answer the question. No need to be rude. Interest rates just jumped .5% and will be up another 1-1.5% by Christmas so they're increasing rapidly & are expected to be 'normal' by May next year. 6-7% by end 2023.
My husband is a broker & most people who would ask strangers on the internet don't understand what's involved in owning a property or guarantor risks. When informed, most opt out of a guarantor arrangement. Recently he had to save a client by getting refinance (most brokers wouldn't touch, too much work) so their guarantor parents didn't lose their home because they couldn't afford current loan my husband had told them they couldn't afford (so they went it alone & probably lied). It took months & several lender negotations.
I never said don't... Just please get informed first.
BROKERS ARE NOT FREE btw. Most charge fees now, some refund if a loan is taken out. Because their time costs money, they need income & too many people don't care so it's ok to waste their time with no return.
Responsible lending laws only work if people are upfront about expenses. My husband gets people who think groceries aren't a reportable expense or 'forget' that they've got credit defaults.
I'd rather be a downer than see someone in trouble.
Yes brokers can charge a fee for service, but the majority still don’t.
I’ve never worked for a broker that charges a fee.
These days we use an app to gain access to a client’s bank account re expenses, have no idea how people can grossly lie about expenses and get away with it?
Things have changed, you require documentation for everything.
In my experience, guarantor loans and other alternate means of obtaining security to purchase property is increasing, people are thinking outside the box because of how hard it is to get into the market.
Renting in area they like, buying in an area they don’t like etc.
If this woman has the opportunity and the means, she should go for it.
I also don’t know any broker on earth that would talk the majority of clients out of using guarantor if they needed it and guarantor was appropriate. That’s just bizarre. It’s so popular for first home buyers trying to get a foot in this tough market.
"most people who would ask strangers on the internet don't understand what's involved in owning a property or guarantor risks."
I didn't ask at all about either of those things. My broker shut down the idea of finding a bank that will consider our private rental as savings.
Your comments are rude and to be honest you sound like a boomer the purchased their first house for $60k. Things are different now. Any of our friends that own houses have had a garantour and three brokers I spoke to said this is the best way if possible so please if you know of a better way to get in to your first home let me know. Building isn't the best option with the way things are at the moment and land alone is taking over a year to settle on where we are due to demand. A minimum of two years to build is nearly $40k in rent we could be putting in to our own home.
Also just so you know we haven't lied once about how much we pay out each week, that's almost impossible. We live a comfortable life with no credit cards,car loans, phone plans or any other debt.
We have spoken with our broker and gone through scenarios of 8 rate rises in a year. We are also borrowing 200k less then what we could be. We are both in very secure jobs with income protection and our garantour (a parent) has done their research for them selfs also.
The only reason we have touched our savings was 2x going In to the wrong savings account accidentally and 1x helping out a family member.
I think it’s bs her husband is a broker, from what she wrote, I work in the industry.
Don’t let her bring you down, do what you have to to get a foot in the door, there’s no shame in using a guarantor.
Do it while you’re young too, because banks don’t like elderly people who are at the end of their working lives being guarantors, even if they own their home 100 percent. This is because if you default, they don’t have the capacity to earn an income in the future.
Good luck, very excited for you x
Thank you :)
I just can't believe how people can get on their high horse with out background information. I don't believe her husband is a broker either and wether or not we should use a garantour or if we can afford our loan wasn't even close to my question. I also have a feeling she's from the eastern states where things are very different.
I personally haven’t.
However with the new schemes that are coming out there might be some suitable for you?
I would talk to a broker or a bank and go from there with the current borrowing power you have.
You might find you don’t even need a guarantor, I didn’t and I’m a single mum with casual work (although very very stead casual work)
I don't think there are any out there that suit our circumstances unfortunately