Finding the right home loan for first time buyers
There are a number types of home loans particularly suited to or advertised as suitable for first home buyers, including loans which allow a part of full guarantee by a third party.
These loans are not the only types available for first home buyers, as you will also be able to choose from a range of standard residential home loans.
There is a range of standard and specialised home loans suitable for first home buyers. Some of the specialised options are discussed below – you can read more about standard loans in our home loans section.
Limited guarantor loans
Limited guarantor loans, or equity guarantee loans, allow an immediate family member to assist a borrower with the purchase of their home by acting as guarantor providing additional security. Most banks allow for this in in one variation or another. If your family owns a home (with or without a mortgage owing) and would like to help you then consult your mortgage adviser on the solution that will work best for your circumstances.
If your family is prepared to help but are either unwilling or unable to act as guarantor, then a gift from family is often accepted as the deposit on your first home. This has the benefit to your family of limiting the amount of their exposure and can still be a great start to getting you into your first home.