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Home loan guarantor?

Hi Mums,
Just wondering if anyone has experience using a guarantor on a home loan? There is no way hubby and I can save a full 20%, or even 5% deposit but can afford to pay a mortgage just fine.
I'm looking into the option of having his parents (whom we have a wonderful relationship with) go guarantor for us so we can finally own our own home.
I'm expecting comments along the line of making cuts etc to save the deposit and I won't go into detail of our very person situation, just trust me that this is the only way (barring a lotto win) that this is going to happen in any acceptable time frame.

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Answers (5)

We considered it when buying our house. My mum was happy to do it, I asked my husband out of curiosity why we hadn't asked his parents. He said they worked too hard to buy their house and wouldn't risk their house if he lost his job and couldn't make the payments. I said well we aren't asking my mum if that's the case so we didn't.

My fil did it for us it was the only way we could get a home at the time. Make sure you don't fault on your loan and your shouldn't have any problems, things will go badly if you start defaulting

Ww did it when we built our house. Never intended to but the bank cut back our borrowing amount after we'd already bought the block of land. My parents were guarantors for us for a portion of the loan but it was a short term solution as we weren't comfortable with it and neither were my parents in case something happened to us. As soon as we had our 80% we refinanced and took them off. It feels a whole lot better without that over us but it was an amazing help when we needed it.

OP Thanks so much for your response. x
helpful (0) 

Yep we did it and we just bought our first house :)

OP Wonderful, congrats!!!
Any tips/advice/things I should know?

helpful (1) 

No offense intended here, but if you are struggling to find even 5% for a deposit, once you have a house, have you considered that you will need to pay rates, insurance, & if something goes wrong (ie, hot water cylinder needs replacing, something stuffs up that you need an electrician or plumber for etc...), how are you going to manage that, if you can pay the mortgage, but have nothing else behind you as backup?

OP No offence taken at all, your thoughts are valid, but we have taken into consideration the things you have stated and we don't have "nothing" to back us up, it's more like we don't have the deposit AND backup if that makes sense... Thanks for your answer.
helpful (1)