Family Guarantee Loans
Buy your first home sooner—with a little help from family.
What Is a Family Guarantee Loan?
Who Are Family Guarantee Loans For?
Family guarantee loans are ideal for:
First home buyers
trying to get into the market sooner
Individuals
with stable incomes but low savings
Families
Homebuyers
in NSW or other high-cost markets across Australia
Whether you’re renting or living at home, FYX Finance makes it easier to step into homeownership with real support—not just another application process.
Key Features of FYX Family Guarantee Loans
Available to a range of family members, not just parents
This is not a one-size-fits-all model. Our team works with you—and your guarantor—to structure the loan in a way that protects both parties while empowering your home ownership goals.
Simplifying the Jargon around 'Family Guarantee' in Home Loans
Family Guarantee Loan
A Family Guarantee is the umbrella term for a home loan backed by a close family member’s property—usually a parent’s. The family member doesn’t provide cash; instead, they offer equity in their home as additional security to lower the borrower’s loan-to-value ratio (LVR). This can help borrowers:
- Avoid or reduce Lenders Mortgage Insurance (LMI)
- Borrow up to 100% of the property purchase price
- Cover costs like stamp duty and legal fees without dipping into savings
Because the guarantee is often limited to just the portion of the loan above 80% LVR, the guarantor’s risk is defined—and the arrangement can be released once the LVR improves. This structure is suitable for a wide range of borrowers, especially first home buyers who have strong income and credit history but limited deposit savings.
Family Pledge Loan
A Family Pledge is a specific variation of the Family Guarantee, typically offered by certain lenders under that branding. What makes it unique is the ability for the guarantor to:
- Nominate a specific dollar amount to guarantee
- Set clear boundaries around liability
- Use either equity or a term deposit as security
- Be released from the pledge once the borrower’s LVR drops below 80%
This provides clarity and control, especially for guarantors who want to support loved ones without taking on open-ended financial exposure.
From the borrower’s side, the Family Pledge often functions the same way—delivering increased borrowing power and helping to avoid LMI. But for the guarantor, the structure offers peace of mind through defined limits.
Family Home Guarantee Scheme (Gov Assistance)
The Family Home Guarantee Scheme is a government-backed initiative specifically designed to assist single parents with dependent children who have at least a 2% deposit. Under this scheme:
- The federal government acts as the guarantor for up to 18% of the property’s value
- Borrowers can avoid LMI with a much smaller deposit
- Available for both first-time buyers and previous owners who don’t currently own a home
- Property price caps and eligibility criteria apply
This program differs from Family Guarantee or Pledge loans in one major way: your family member isn’t required to put their assets on the line. Instead, the government provides the guarantee, making it an ideal option for eligible single parents with limited family financial support.
At FYX Finance, we break these structures down with clarity
Whether you’re exploring a family guarantee loan in NSW, curious about setting a family pledge, or wondering if you’re eligible for the Family Home Guarantee Scheme, our job is to help you understand:
- What each structure really means
- Who it protects
- How it impacts your borrowing power, costs, and responsibilities
Because every family, financial picture, and goal is different—and we’re here to find the solution that truly fits.
How Much Can I Borrow With a Guarantor?
With a guarantor home loan, you may be able to borrow up to 100% of the property value, plus associated costs. The exact amount depends on:
- The equity available in the guarantor’s property
- Your own income and ability to service the loan
- The property value and loan structure
- Lender policies (which FYX helps you navigate)
Your family member’s support can shift your LVR from 90%+ down to below 80%, which means lower risk and no LMI—translating to thousands saved.
Going Guarantor on a Loan: What Families Need to Know
When a family member chooses to go guarantor, they’re not handing over cash. Instead, they’re providing security for part of the loan. This could be:
- Equity in their home
- Cash in a term deposit
The guarantee is limited—usually covering just the portion of the loan above 80% LVR—and can be released once that threshold is reached. Until then, if the borrower defaults, the guarantor is liable for that guaranteed portion.
We always recommend seeking independent legal advice, and FYX will support the process every step of the way with transparency and care.
Family Pledge/Guarantor
Category 2
Category 3
- Guarantor to provide full application form with supporting financials
- Independent Legal Advice required for guarantors
- Borrowers maximum LVR before the pledge is 110% (i.e. total loan amount/ purchase property security value or purchase price).
- Guarantors maximum LVR is 50% for the pledge component only (i.e. total pledge amount/guarantor security property value) Guarantors maximum LVR is 70% including all pledge amounts and any outstanding debt secured by the guarantor’s property (i.e. [total guarantor debts secured by this security property + pledge] / guarantor security property value).
- The pledge limits the guarantors’ liability to a specific amount and is defined as the total loan sought less the maximum LVR for the loan/security type of the property purchase price divided by the same LVR on the purchase loan.
- The guarantor/s must provide a full application form with supporting financial information including details of the security property and any outstanding debt against the security property. Where there is finance outstanding against the guarantor’s security property, 3 months’ loan statements evidencing satisfactory conduct are required.
A Common Pathway for First Home Buyers
If you’re a first home buyer in Australia—especially in competitive markets like NSW—you may feel stuck between high prices and deposit hurdles. The first home buyer family guarantee option bridges that gap.
What You’ll Need to Apply
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Proof of income and current financial commitments
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ID and residency documents
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Details of the property you want to purchase
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Budget for associated costs (stamp duty, legal fees)
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Mortgage statements or valuation of the property being used as security
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ID and proof of ownership
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Independent legal advice (mandatory)
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Understanding of guarantee terms and release conditions
Let's move forward together
The process is a little more detailed than a standard home loan—but with FYX Finance, it’s always approachable and guided.
FYX Finance: Built for Borrowers Who Think Ahead
We’re not just about getting a loan approved—we’re about getting the right loan for where you’re headed next.
Independent mortgage manager with access to a wide lender network
Non-bank flexibility and private lending pathways
Deep knowledge of commercial markets and business borrowing
Personalised support from first inquiry through to settlement and beyond
