Mortgage Guarantors – who, what, when & how.
If you’re looking to get a mortgage and your mom and dad are going to help you, you’re probably going to get poached for what’s called a guarantor situation where mom and dad or friends and family come in and set their names effectively on the applications as well. And so what you don’t want to do is get in a situation where you’re putting them in jeopardy just to reach your goals, so you might want to consider using a gifting scenario or making sure that you’re getting the right tax and ownership structure advice.
Not just dealing with your bank, your bank is probably going to set up the deal to protect them first. You want to work with a mortgage advisor that’s going to at least educate you and everybody that’s involved with your mortgage application on all the different options and that there is a plan for the future that if they want to, that they’re no longer tied to your property and to your mortgage.
So get some mortgage advice before you take the plunge and understand that the banks do offer different options.