The Greater Bank Great Rate - Discount Variable with Family Pledge Home Loan offers a discounted rate and the opportunity to avoid paying lenders mortgage insurance.
The Family Pledge Home Loan takes a range of competitive features from Greater Bank’s Great Rate Home Loan and adds the opportunity to have a family member opt to go guarantor for your loan, potentially eliminating the need for a deposit.
There are no upfront or ongoing fees and you will not be forced to pay lenders mortgage insurance (LMI), plus you can borrow up to 110% of the property purchase price, subject to the bank's approval.
Note that your security property must be in NSW, ACT or QLD to be eligible for this loan.
| Product Name | Greater Bank Great Rate Discount Variable with Family Pledge Home Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $150,000 |
| Maximum LVR | 110% |
| Maximum Insured LVR | 110% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Suitable for Investment | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Ongoing Fees | $0 p.a. |
Pros
- $0 application fee
- LVR of up to 110% with guarantor
Cons
- Requires a family guarantee
- Not suitable for all borrowers
What do I need to know about the Family Pledge Home Loan?
There are no ongoing monthly fees and no application fees with this loan. You will not be asked to pay lenders mortgage insurance (LMI) nor a deposit as it is structured for borrowers who will be using a guarantor. By using a guarantor to help you minimise your upfront costs and the bank's risk, you can also borrow up to 110% loan-to-value ratio (LVR), subject to the bank's approval of your family member as guarantor.
What are the features and benefits of the Family Pledge Home Loan?
- Minimum loan amount. The minimum amount you can borrow with this loan is $150,000.
- Loan term. The maximum loan term available for this product is 30 years.
- Maximum LVR. As this loan is for borrowers who are using a guarantor or family pledge you are able to borrow up to 110% LVR subject to Greater Banks approval.
What fees and charges come with this loan?
There are no application or ongoing fees with this loan and you will also be able to avoid lenders mortgage insurance when using the Family Pledge Home Loan.
How do I apply for the Family Pledge Home Loan?
If you’ve compared your borrowing options and decided this is the right loan for you and have a family member who can go guarantor for you click "Go to Site" to begin the application process. To be eligible for this loan you must be 18 years or older and have a good credit rating. It’s also a requirement that you are an Australian citizen or a permanent Australian resident.
The amount you will be eligible to borrow will be based on your financial situation. In order for Greater to assess your application, you’ll need to provide the following information:
- Personal details including your name, address and contact details
- The name and contact details of your employer
- Financial information including details of your income, assets and liabilities
- Details of the guarantor and their property that will be held as guarantee
The Great Rate Discount Variable Family Pledge Home Loan from Greater offers a competitive lending option for potential borrowers. However, make sure to compare a range of home loans before deciding which one is the best for your situation.
What if the guarantor’s property is in Victoria?
Hi Carlos,
Thanks for reaching out to finder.
Unfortunately, Greater Bank will not be able to assist you with any inquiry about their home loan if your security property is not in NSW, QLD or ACT.
I hope this helps.
Cheers,
Charisse
My wife and I wish to buy a house with my daughter and son in law for them to live in. We own a house already fully paid for but need to help them purchase Their own with us putting around 50% of the cost. The son in law with his work had to move around to differ the areas of Queensland . And missed paying a electric bill. But this has been paid now as Guarantor could yo see a problem getting a mortgage
Hi Michael,
Thanks for reaching out.
Credit history is one of the eligibility requirements that lenders look into when approving mortgage applications.
By checking on this page you may be able to use the home eligibility calculator and read through a guide on how mortgage providers classify borrowers and how factors can influence the decision or the approval of a loan.
Alternatively, you may speak with an expert or a mortgage broker to discuss this type of situation.
Cheers,
Joanne
how does it work if the guarantor has a mortgage still?
Hi Kesha,
Thanks for your inquiry
The guarantor needs to either own their property outright or owe less than 80% of the property value on their mortgage. So if your guarantor owes less than 80% then there should be no problem.
Hope this information helps
Cheers,
Arnold
Say this loan is approved, and after a few years you have enough equity in the property, would it be possible to remove the family as guarantor?
Hi Chrissy,
Thank you for your comment.
Some institutions will allow a release once enough equity has been built up in the home. Sometimes this release will incur a fee so it is important to find out how much that will be.
Kindly refer to this page to find out more on how a guarantor can be released from a loan.
Regards,
Jhezelyn
Hi I am wondering if you can use family pledge
Home loan to refinance somehow?
Hi Rose,
Thanks for your question.
Yes, you can use Greater Bank Great Rate Home Loan for refinancing purposes.
You may also compare other home refinancing loans here.
Cheers,
Anndy