We understand that it is a tough market out there and sometimes you just need a helping hand to get you through the process of owning your first home.
LCU allows a family member to guarantee up to 20% of the loan through either a first mortgage against their property or a term deposit. The homebuyer secures the remaining 80% and pays off both loans.
Benefits
The home buyer does not need the full upfront deposit. They may only have a portion of the deposit but can avoid paying the lenders mortgage insurance premiums.
When the total amount owing on the loan is reduced to below 80% of the value of the property (LVR); the guarantor, upon request, may be released from the loan contract with no ongoing liability.
This option can be used in conjunction with our First Home Buyer Loan or any other LCU mortgage loans (e.g. Fixed, variable, interest only home loans)