(03) 6108 2110

Here at Derwent Finance we get asked daily what the benefits and Risk are of having/being a Guarantor; so, we have listed some of them below.

Benefits-

  • Borrows may be eligible to  borrow 100% of the purchase price
  • Borrows with a guarantor may be eligible to avoid Lenders Mortgage Insurance (LMI)
  • Competitive interest rates
  • Ability to borrow more than the value of the home to break that down, (that is 100% of the purchase price plus the cost for Stamp Duty and Legal Fees)

Risks-

  • As the guarantor, you are required to undergo a credit check and fill out similar masses of paperwork that those applying for the loan do
  • If the borrower cannot pay the loan, the repayments are your responsibility
  • Being a Guarantor may affect you in the future if you are wishing to get a loan yourself.

If you have any further questions, please do not hesitate to contact our team.

Phone (03) 6108 9177

Email headoffice@derwentfinance.com.au