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MortgageSMART™by Emanate Finance
First home buyers
No deposit? Your family's equity could help you buy sooner.
Family guarantee and guarantor home loans — plus the 5% deposit options, compared.
General information only — illustrative modelling, not credit assistance or an offer of finance. Actual outcomes depend on your circumstances, lender policy, rates and fees.
- Buy years sooner, without saving a full deposit
- Your family puts up equity, not cash
- Lenders mortgage insurance is often avoided
- We plan how the guarantee gets released again
2-minute check · no documents · no credit check
If you can handle the repayments but the deposit is what's holding you back, a family guarantee lets a parent or close family member put up a limited slice of the equity in their home as extra security — instead of you waiting years to save 20%.
It isn't the only path. Below you'll also find where the 5% deposit Home Guarantee Scheme, low-deposit loans and no-LMI professional loans fit, so you can see which route suits you rather than being pushed into one.
What clients say
148 Google reviews · rated 5.0
You can afford the repayments. The deposit is what's holding you back.
Rent goes up, the savings target moves, and it can feel like you're running to stand still. Meanwhile you're already paying an amount every month that would service a mortgage.
A family guarantee is one way to close that gap using equity your family already has. A 5% deposit scheme place or a low-deposit loan are others. The point is that "save 20% first" isn't the only option on the table.
Guarantor home loan calculator
What could a family guarantee support?
Three numbers give you an indicative purchase price: what their home is worth, what's owing on it, and any savings you'd add. The guarantee available plus your savings stand in for a 20% deposit. No contact details needed to see the result.
What's their home worth?
$1,000,000
A rough figure is fine — the lender values it properly later.
What's still owing on it?
$500,000
Move to $0 if it's paid off.
Savings you can add
$15,000
Optional. A guarantee can work with little or nothing saved.
Indicative result
A guarantee could support a purchase around $1,575,000
Guarantee available in their home
$300,000
Your savings added
$15,000
Total deposit power (20%)
$315,000
Indicative loan amount (80%)
$1,260,000
Allow for upfront costs (approx.)
$78,750
On your savings alone
$75,000
That's roughly $1,500,000 more buying power than your savings alone would reach. It's an estimate on the figures above, not an approval — the repayments still have to be comfortably affordable, and income, expenses, debts, credit history and each lender's guarantee policy decide the outcome. If a guarantee doesn't suit your family, a 5% deposit scheme place or a low-deposit loan may.
Check if you qualify
A handful of questions, one at a time. No documents, no credit check.
Step 1 of 6
Is this your first home?
Good to know — it doesn't change whether a guarantee can work.
How a family guarantee works
Four steps, and the fourth one matters as much as the first. The goal isn't to keep your parents tied to your mortgage forever — we plan how to get them out again.
1. You buy the property
The home is yours, in your name, with your loan. Your family isn't a co-owner.
2. Family provides limited security
A capped slice of equity in their home supports your loan, so a large deposit isn't needed.
3. You build equity
Repayments, extra repayments and any growth in value reduce how much support you need.
4. The guarantee is released
Once your own property can carry the loan, the guarantee comes off their title.
What could waiting cost you?
Saving another $60,000 to $100,000 while renting can take years, and every one of those years is rent paid on someone else's asset rather than repayments on your own.
We're not suggesting prices will rise — nobody knows that. The point is simply that if equity is available and the repayments are comfortable, waiting may be a choice rather than a requirement. Whether that's through a guarantee, a 5% deposit scheme place or a low-deposit loan is what we'd work out with you.
Your parents don't have to hand over their savings
This is the biggest misconception. A guarantee uses equity, not cash. Nothing is withdrawn from their accounts, and they don't make your repayments.
They also don't automatically become responsible for your whole loan. With a limited guarantee the amount is capped, and the structure determines exactly what's guaranteed — which is why we set it up carefully and why they get their own legal advice.
Who it suits, and who it doesn't
Being honest about this saves everyone time — including the awkward conversation with family.
- You can comfortably afford the repayments today
- Stable income and a clean recent credit history
- A family member with equity who's genuinely comfortable helping
- You want to stop renting rather than keep saving for years
- You'd like a plan to release the guarantee, not leave it open-ended
- You're happy for us to compare the 5% deposit options as well
When it isn't the answer
A guarantee doesn't make an unaffordable home affordable. Lender rules on income, expenses, existing debts and credit history still apply, and a guarantee doesn't get you around them. If the repayments would stretch you, the honest answer is to fix the position first — and we'll tell you that rather than submit an application that hurts your credit file.
Family guarantee vs the other low-deposit routes
Searching for the Home Guarantee Scheme or a 5% deposit loan and landed here? Good — these all solve the same problem in different ways.
| Option | Deposit typically needed | Lenders mortgage insurance | Suits you if |
|---|---|---|---|
| Family guarantee (guarantor loan) | Often little or none | Usually avoided | You can afford repayments and family has equity they're comfortable using |
| 5% deposit Home Guarantee Scheme | Around 5% (2% for eligible single parents) | Not payable while the guarantee applies | You meet the eligibility rules and price caps, and a place is available |
| Low-deposit loan with LMI | Usually 5% – 10% | Payable, sometimes added to the loan | You'd rather not involve family and can absorb the insurance cost |
| No-LMI professional loan | Often 10% | Waived by some lenders for eligible occupations | You're in an occupation a lender waives LMI for, such as medical or legal |
Scheme places, price caps and eligibility rules change, so we check what currently applies before you plan around it. Not sure which is better? We'll compare all of them rather than force you into one.
What about Mum and Dad?
Their questions are usually the ones that decide whether this happens, so we're happy to explain it to everyone involved on the same call.
Exactly what are we guaranteeing?
A capped amount, secured against a slice of your property's equity — not the whole loan.
Can we still sell or refinance?
It's more involved while the guarantee is in place, and usually the guarantee is released or substituted first. Worth confirming with the lender before you commit.
When do we come off it?
Once the loan balance falls to a level the property can carry on its own. We plan for that from day one.
Do we need our own advice?
Yes — lenders require guarantors to get independent legal advice, and often financial advice, before signing.
Example only
What this can look like
A first home buyer with $15,000 saved, whose parents own a $1,000,000 home with $500,000 still owing — so about $300,000 of guarantee available. Figures come from the same calculator above, and the repayments still have to be affordable.
Without a guarantee
$75,000
Indicative purchase price on their savings alone, before considering a low-deposit loan with LMI or a 5% deposit scheme place.
With a family guarantee
$1,575,000
Using around $300,000 of the $300,000 guarantee available in their parents' home. An estimate, not an approval.
Where MortgageSMART™ comes in
Getting in is step one. The plan matters just as much, and it's the part most lenders never talk about.
Buy smart
The right structure and lender for a guarantee, not just the cheapest advertised rate.
Repay smart
A repayment plan built to bring the balance down faster than the minimum ever would.
Release the guarantee
A target for getting your family off the loan, reviewed with you along the way.
Next step
Stop guessing how long you'll need to save.
Run the numbers, take the quick qualification check, and we'll come back with the guarantee and the 5% deposit options side by side.
Two minutes · no documents · no credit check
Australian brokers
Our brokers live and work in Australia, just like you.
Available online
Video, phone and email — wherever you are, whenever suits.
Safe and secure
Your private information stays private.
Lifetime loan maintenance
We keep reviewing your loan with the lender long after settlement.
Family guarantee and no deposit questions, answered
What is a family guarantee home loan?
A family guarantee (often called a guarantor home loan) lets a family member offer a limited slice of the equity in their property as additional security for your loan. That extra security can remove the need for a large deposit, and often the need for lenders mortgage insurance. Policies differ by lender, which is what we assess for your situation.
Can I buy with no deposit at all?
Sometimes. With enough usable equity from a guarantor, some lenders will fund the purchase and costs without a saved deposit. You still have to show you can comfortably afford the repayments, and lender policy, the property and your credit history all matter. It depends on the lender and your circumstances, which is what we assess.
Does my guarantor become responsible for my whole loan?
Not with a limited guarantee, which is the structure we usually aim for. The guarantee is capped at a set amount secured against their property, rather than the whole loan. The exact wording depends on the lender and the documents they sign, and they should get their own legal advice.
Do my parents have to give me money?
No. A guarantee uses equity, not cash. Nothing is withdrawn from their savings and they don't make your repayments unless you default and the lender calls on the guarantee.
When is the guarantee released?
Usually once your loan balance falls to a level your own property can support on its own — commonly around 80% of its value — through repayments, extra repayments or growth in value. We plan for that release from the start rather than leaving it open-ended.
Can my guarantor still sell or refinance their home?
It's more involved while a guarantee is in place, because the lender holds security over their property. It's usually possible to release or substitute the guarantee first, and that's a conversation to have with the lender before they commit to anything.
Who can be a guarantor?
Most lenders look for immediate family, typically parents, and some accept siblings, grandparents or other close family. They generally need enough equity, an acceptable property and to be in a position to take on the commitment. Some lenders have age or income requirements for guarantors as well.
What is the Home Guarantee Scheme, and is it better?
The Home Guarantee Scheme is a federal scheme where the government guarantees part of an eligible buyer's loan, so they can buy with around a 5% deposit without paying lenders mortgage insurance. It has eligibility criteria, price caps and limited places. It suits some buyers better than a family guarantee, and some buyers worse. We compare both rather than pushing you into one.
What if I can't get a guarantor at all?
There are other low-deposit routes: a 5% deposit scheme place, a low-deposit loan with lenders mortgage insurance paid or added to the loan, a no-LMI professional package for some occupations, or state grants and concessions. We'd map out which of these you may qualify for.
Want us to explain it to your parents too?
Book a complimentary video call and we'll walk everyone through exactly what a guarantee does and doesn't mean — including the other low-deposit routes if a guarantee isn't right for your family.
Video, phone or email — whatever suits you.