Who is eligible to be a guarantor for a home loan?
Most lenders require the guarantor to have a strong (usually family) relationship with the purchaser. As standard, they will accept the applicant’s:
• Parents or those of the co-applicant
• Adult children
• Spouse or de facto partner
Some lenders may approve other family members that are approved as exceptions however they need to have a good credit history and demonstrate a close relationship with the purchaser.
Friends, co-workers, former spouses or de facto partners will generally not be eligible as well as anyone with a bad credit history.