In this episode of The Smart Property Investment Show, host Phil Tarrant and Eva Loisance from Finni Mortgages explore how family pledges and guarantor loans can help overcome traditional deposit barriers in property investment.

The duo explains how family pledges and guarantor loans let buyers use a relative’s property equity to secure up to 105 per cent of the purchase price, bypassing deposits and lender’s mortgage insurance (LMI).

Eva stresses that although many Australians rely on slower traditional methods or government assistance, families who use pledges can enter the market faster, save on LMI costs, and enjoy greater flexibility than government schemes.

However, risks include the buyer’s full repayment responsibility and potential loss of the guarantor’s property if repayments fail, with Eva highlighting the importance of legal advice and clear agreements to protect all parties.

She says that ultimately, leveraging family pledges and guarantor loans empowers investors to act proactively and accelerate their property ownership goals.

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