Guarantor Home Loan Calculator
See exactly how much of a family member’s equity a guarantee would use, what it costs you each month, and when they come off the loan.
Work Out the Guarantee You’d Need
Enter the purchase you have in mind and what you have saved. The calculator works out the loan, the size of the guarantee, whether the guarantor has enough equity to support it, and roughly when they can be released. Stamp duty is calculated on the New South Wales scale.
What this would look like
Estimates only, for New South Wales. Usable equity assumes a lender will lend to 80% of the guarantor’s property value less what they still owe; lenders differ. Stamp duty uses the current NSW scale and the First Home Buyers Assistance Scheme thresholds. Release timing assumes scheduled repayments only and no change in property value.
Before You Ask a Family Member
A guarantee is a serious commitment and the calculator above only shows the arithmetic. ASIC’s Moneysmart is blunt about what a guarantor takes on: if you cannot make repayments, they may have to repay the whole loan plus interest, and the lender may sell the property they used as security.
It can also stop them borrowing themselves, and a default would appear on their credit file. Lenders require guarantors to get independent legal advice before signing, and that requirement exists for good reason.
Our full guide to guarantor home loans works through who can be a guarantor, how a limited guarantee caps their exposure, and how they get released. If the numbers above look close, that is the next thing to read.
Not Sure Which Path Fits?
David works through guarantor loans, the government 5% deposit scheme and straight low-deposit lending with first home buyers across Newcastle, Lake Macquarie, Maitland and Port Stephens — and will tell you honestly which one suits.