Home Buyers Guide

Chapter 7: Help, I can't afford to buy a home - what are my options?

Option 4: Can a family member act as a Guarantor?

The use of guarantors doesn't seem that common anymore, but a few lenders will still allow you to use a family
member to guarantee your loan.

As far as I can tell, a lot of lenders are reluctant to use guarantors these days, because they want to be sure you can make the repayments on your own.

Speak to your mortgage broker for more details.

Option 5: Buy a home with a friend or family member:

Most people would ideally like to ‘stand on their own two feet’ and buy a home on their own.

But because houses have become so expensive, qualifying for a mortgage on just one salary is pretty difficult.

As a result, buying a home with a friend or family member is an option that's becoming more and more common in
recent years.

It’s a simple case of multiplication:

twice the salary = twice the mortgage.

So although it may not be your first choice, it could allow you to get on the property ladder, albeit it with someone
else.

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