In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
A guarantor typically stays on a mortgage until the borrower meets certain conditions set by the lender. It usually involves achieving sufficient equity in the property or demonstrating the ability to service the loan independently.
The borrower can do this by making additional payments, waiting until security has increased in value, refinancing the loan to a lender who values it with at minimum 20% equity.
To initiate the process of releasing the guarantee the borrower needs to contact their broker who can contact the lender on there behalf and have the property valued and make sure the borrowers financial situation still suits the lenders criteria, complete an internal refinance. On completion the guarantor can be released from the title.
