Non-Resident Guarantor Home Loans - How to borrow 100% of the purchase price
Non-Resident Guarantor Home Loans
Despite what you may have heard, it is possible to obtain a non resident home loan that finances 100% of your purchase price even if you are an Australian non-resident.
Loans of this kind are called Non-Resident Guarantor Home Loans, and if you are eligible for them, then you won’t have to pay a single penny as deposit. Read on for more information:-
What is a Guarantor Home Loan?
Guarantor non resident home loans are loans where relatives of the borrower (most commonly parents) agree to be the guarantor for 20% of the purchase price. They can either mortgage their home or pay cash (also called a term deposit) for the same.
Who is a Non-resident? (*only for the purposes of this home loan article)
A non-resident can be either of the following:-
- A foreign national living in Australia on a temporary visa, like the 457 work visa.
- An Australian citizen living and working overseas (Australian expats).
What is the eligibility criteria for a non-resident guarantor home loan?
The following criteria need to be satisfied to be eligible for a non-resident guarantor home loan:-
- A good credit history with either no credit defaults or defaults that have already been paid off.
- Good employment history outside of the probation period. And if under probation, then the individual must have former experience in a similar position.
- Assets greater than liabilities, also known as Positive Asset Position.
- Income that is sufficient to cover the repayment of the loan.
- Both the property being purchased and the guarantor’s property must be regular residential houses or units.
Who is an eligible guarantor?
The following candidate(s) are eligible as guarantors:-
- Immediate family members such as parents or siblings. Cousins and friends are not eligible.
- Guarantor has their own property in Australia and has sufficient equity in the property.
- Guarantor has a clean credit history.