Guarantor

A guarantor is someone — usually family — who pledges their own property or income as additional security for your loan, commonly to cover a deposit shortfall.

Guarantees helped many first buyers in, but the guarantor carries real risk: if you default, the bank can pursue them. Limited guarantees (capped at the deposit shortfall) and a clear exit plan — releasing the guarantee once your equity supports the loan alone — are the responsible structure. Independent legal advice for the guarantor is mandatory at most banks.

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with official sources and seek independent professional advice.