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Family Guarantee or Family Pledge loans


These are alternative ways of getting into your new home if your family is willing to lend you a helping hand.  A family member needs to be willing to act as either a guarantor for your new loan and or provide additional security for the loan.

Commonwealth Bank uses Family Equity with different options.  The family member can:

  • Act as a guarantor by offering their home as security
  • Help with the new loan payments
  • Take on a second mortgage on their property
  • Give money to be used towards the purchase


St George bank has a Family Pledge loan that is slightly different.  With their loan, the family member only "pledges" or guarantees a certain percentage of their home's security - just enough to avoid paying mortgage insurance.