Purchase your home sooner with ANZ Family Guarantee. We show you how.

For many first home buyers, it's not the size of mortgage repayments that puts them off but the time needed to save a big enough deposit. With house prices still rising faster than wages, in many parts of Australia it can take years to simply put together a deposit. And by then most properties are out of reach.

But there is an alternative. To help young people realise their dream of home ownership sooner, and make that all-important first step on the property ladder, ANZ has introduced ANZ Family Guarantee. ANZ Family Guarantee gives you a head start by letting you purchase a property without a deposit. You can even use it to invest in residential property.

About ANZ Family Guarantee

ANZ Family Guarantee lets certain family members use the equity in their home as additional security for a portion of your loan amount. This means you can maximise the amount you can borrow (up to 100% of the purchase price plus costs such as stamp duty and other legal costs) and buy a property sooner. You may even be able reduce or avoid paying a premium for Lenders Mortgage Insurance (LMI).

It works like this:

• A family member (parent, parent-in-law or step-parent) agrees to act as guarantor for a portion of your loan amount (Grandparents or siblings will also be considered).
• The guarantor chooses what portion of the loan will be secured. This can be any amount less than 100%, but a popular option is for amounts up to 20%.
• You select the type of loan (excluding Home Equity Loans, Equity Manager Accounts and Low Doc Loans).
• You complete a Loan Serviceability Credit Assessment form and standard loan application form. The guarantor completes a similar form and statement of financial position.
• The guarantor supplies proof of independent legal and financial advice.

Once all the above steps are successfully completed, you are on the path to becoming a home owner.

Benefits of an ANZ Family Guarantee:

For you

• Buy your home sooner.
• No need to spend years saving for a deposit.
• Maximise the amount you can borrow (up to 100% of the purchase price plus costs such as Stamp Duty and other Legal fees).
• Reduce or avoid paying a premium for lenders mortgage insurance.
• Choose from a wide range of ANZ loan products to suit your needs.

For guarantor

• Help your family purchase a property.
• Liability limited to a specified amount compared to 100% liability under a traditional guarantee .
• Greater potential to be released from the guarantee sooner compared to a traditional guarantee.

Avoiding Lenders Mortgage Insurance

Residential property buyers with a deposit of less than 20% of the value of the property are usually required to pay the premium for Lenders Mortgage Insurance. This can add to the cost of your home loan. LMI protects the lender when a borrower has a high Loan to Valuation Ratio (LVR). However, with ANZ Family Guarantee, you may be able to avoid the requirement for LMI.

Here's an example:

Without ANZ Family Guarantee…

Loan amount ($95,000) ¸ Property Value* ($100,000) x 100

= LVR 95%

and

Minimum 5% deposit required (LVR exceeds 80%).

LMI premium is payable by the borrower

With ANZ Family Guarantee…

Loan amount ($100,000) ¸ (Property Value* ($100,000) + Family Guarantee

($25,000)) x 100

= LVR 75%

and

No LMI Payable

No deposit necessary** as LVR does not exceed 80%

No LMI premium is payable by the borrower

Note: If the Family Guarantee amount does not reduce the LVR to below 80%, a deposit will be necessary and a LMI premium payable.
* This property value does not take into account government fees and charges.
** Borrower may choose to provide a deposit amount.