Does a guarantor mean my parents pay the loan?

No — you pay the loan. Parents only liable if you default and bank enforces.

How much of my parents' property is at risk?

Only guaranteed portion (20-30% of your loan), not their whole property.

When can the guarantee be released?

When loan hits 80% of property value — typically 3-7 years.

Can my parents on Age Pension be guarantor?

Possible but lender approach varies. Working/self-funded guarantors preferred.

Are guarantor loans available with halal finance?

Some Islamic providers accept guarantors. Varies.

What Is Refinancing | Mortgagefy

Who this guide is for

Australian families considering guarantor home loans — typically children buying their first home with parental property equity support.

FHBs with low deposit whose parents own property
Buyers wanting to avoid $15K-$30K LMI cost
South Asian families using parental support for property
Parents wanting to understand what they're signing up for

The local picture

Guarantor loans solve the deposit problem but parents understandably worry about risk. Most general brokers don't explain the structure clearly enough for parents to make informed decisions.

How Mortgagefy helps locally

Mortgagefy explains guarantor loans clearly to both child and parents — the actual structure, the real risks, and how the guarantee gets released later. Multilingual support so parents can ask questions.

Free advice.

How it works — 4 simple steps

Free family chat

20-minute call including parents to walk through the structure.

Compare guarantor lenders

We identify lenders that offer guarantor loans for your situation.

Application + guarantor docs

We compile both child and parent documentation.

Settle into home

Child moves into home with guarantee in place.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Walk through guarantor loan with us

Free 20-minute family call. Parents welcome.

Start Your Free Assessment Call 0432 634 648

Get your personalised answer in 2 minutes

Free, no obligation. We'll match you with the right lender for your situation.

Model your scenarios: Use our free home loan calculators to estimate borrowing capacity, repayments, and savings.

What is a Guarantor Loan and How Does It Actually Work?