With property prices rising, saving a deposit to purchase a home seems out of reach for most trying to enter the housing market. At MYCU, we believe every Australian should have the opportunity to buy their own home, so with our Family Pledge option we can help you help your loved ones make the dream a reality.
The Family Pledge allows a family member (eg. parents) to offer the equity in their property as an additional security for the home loan. The primary security for the home loan is the property being purchased with a mortgage also taken over the guarantor’s property.
The borrower can then borrow up to 105% of new property price to cover the purchase plus upfront costs such as stamp duty and legal costs. You also avoid the need to pay lenders mortgage insurance, because the overall loan to value ratio is capped at 80%.
Unlike other guarantees, the Family Pledge option also allows the family member to limit the guarantee amount. The guarantee may also be released when there is sufficient equity in the property purchased to cover the entire loan.
With the Family Pledge option, you also have access to our range of affordable home loans.
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