Content updated 2 November 2026.
Who can be a guarantor for a home loan?
Start by checking which relationships the proposed lender accepts. Parents and other close family members may be considered, but acceptance is not universal. The lender also checks the security offered, the guarantor’s circumstances and its required advice process.
Tell Chris about every owner of the proposed security property, any mortgage, existing guarantees and plans to sell, refinance or retire. Being willing to help is only the beginning of the assessment.
Borrower document checklist
A family guarantee does not replace your income evidence or make repayments affordable. Prepare the normal application records, with the exact periods and format confirmed for the proposed lender.
- Identification for each borrower and details of the proposed purchase.
- Current payslips and employment details, or the financial records required for self-employed income.
- Living expenses, dependants, debts, credit card limits and other commitments.
- Savings and deposit statements, source of any gifted funds and a budget for purchase costs.
- The contract of sale when available and details of the requested loan amount and purpose.
Include stamp duty where applicable, conveyancing, inspections and lender costs. A guarantee is not a cash payment toward every cost of buying. Use our Victorian buying-costs guide to help prepare.
Guarantor document checklist
- Identification and confirmation of the relationship to the borrower.
- The property address, ownership details and information needed for title and valuation checks.
- Current mortgage statements and details of other debts or guarantees affecting the position.
- Income, assets, expenses and retirement circumstances where requested by the lender.
- Required consent forms and completed guarantee and security documents.
- Evidence of independent legal advice and any other advice or acknowledgements the lender requires.
This is a preparation list, not a universal lender checklist. Arrange a secure way to provide documents and allow time for the guarantor to review them separately.
How much equity does a guarantor need?
The lender’s valuation and security policy matter more than an informal property estimate. Existing debt reduces total equity, and the lender may not accept all remaining equity for the proposed guarantee. Property type, location, ownership and existing security arrangements can also affect the decision.
Illustration only: a property valued at $900,000 with $300,000 owing has $600,000 total equity. If a hypothetical lender assessed total supported exposure up to 80% of that value, the arithmetic difference after the existing debt would be $420,000. This is not a borrowing limit, accepted guarantee amount or approval. The lender’s actual assessment and legal structure may differ.
For the amount being guaranteed and how a cap works, see our limited guarantees and equity guide.
Questions to resolve before a guarantor signs
Confirm the guarantee amount, any additional interest or costs covered, the property being secured and when the lender can call on the guarantee. A limit does not remove the possibility of losing secured property. The arrangement can also affect future borrowing.
The guarantor should receive the actual documents early and obtain independent advice, with time to ask questions and decide freely. A broker’s explanation is not a substitute for legal advice. As one lender example, CommBank says legal advice and a statutory declaration are required before entering its Family Security Support arrangement. Other lenders set their own requirements.
Plan for guarantor release from the start
Ask the lender how a release request would be assessed, including valuation, loan balance, repayment history and the borrower’s financial position. Reaching an estimated LVR is not the same as receiving formal release. Confirm both the guarantee and supporting security have been dealt with in writing.
See our guarantor release guide for the process, or the family guarantee guide to compare the arrangement with other ways family may help.
Prepare a family guarantee application
Book a guarantor requirements discussion with the borrower’s income, deposit and purchase budget, plus the proposed guarantor property details. Chris can identify which lender requirements need checking before an application.
Sources checked 2 November 2026: Moneysmart: going guarantor and CommBank: guarantor support. The lender example is not a recommendation or an industry-wide rule.