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Family Pledge

Fire up their loan with your home

Get your home sooner when a family member guarantees part of your home loan.

 



St.George Family Pledge in a nutshell

The guarantor can use their home's equity to guarantee part of their family members loan.  

There's no cash to pay and you choose the amount.

Request to release guarantee when the Loan to Value ratio requirements are achieved.  

 

 

 

Benefits

Borrowers

  • Help you reduce or avoid Lender's Mortgage Insurance, save you money when you need it most.
  • Maximise the amount you can borrow - up to 100% of the purchase price, plus costs such as Stamp Duty and Legal Fees.
  • There are no extra fees for the Family Pledge option. Standard guarantee and legal fees will apply.

Guarantors

  • Can be new or existing St.George Bank Home Loan customer or even retain their home loan with their existing home loan provider1
  • Nominate a specific amount that you guarantee is limited to, rather than a guarantee for the entire loan amount1
  • Be released from the guarantee (provided the borrower is not in default and we would not require Lender's Mortgage Insurance on the then outstanding loan balance under our credit criteria) much sooner than would normally occur.

 


 

Example

Family members can act as a guarantor and use a portion of their own home's equity to help their loved ones, the borrower, to secure a home loan.
This solution:

  • reduces the borrower’s loan to value ratio
  • can also help them save a significant amount of money by reducing or even avoiding the need to pay Lender's Mortgage Insurance.

With St.George Family Pledge, the guarantee can be limited to a specific amount (unlike some other banks), which helps provide certainty and allows the guarantee property to be released, upon request, when there is sufficient equity in the borrowers property.

For example, if Martin is planning to purchase a $300,000 property with a $15,000 deposit (LVR of 95%), which means Lenders Mortgage Insurance (LMI) would be payable.

If Martin’s parents were existing St.George Bank Home Loan customers or had a freehold house and agreed to provide a family pledge guarantee of $56,500 as an additional security, the LVR would reduce to 80%.

This would result in the LMI premium requirement being waived, saving Martin up to $5,800.

 


 

Am I eligible?

  • Family Pledge is available for all owner-occupiers and first home buyers purchasing an investment property.
  • Family members who can provide the Family Pledge guarantee include parents, siblings, sons and daughters.
  • Family Pledge is not available on refinances of existing Home Loans.
  • No single guarantee is to represent more than 50% of the guarantor’s security.

 


 

Which home loans are eligible?

The Family Pledge option is available on a wide range of St.George home loan products2, so you can choose the home loan option that suits you best.

Start your journey online

Learn how much you could borrow, without knowing the loan type

Receive indicative approval in under 10 minutes

A home loan expert will call to talk you through your options 

Don’t forget to let us know you’d like to apply for Family Pledge when our lender’s contact you in regards to your application.

 

 


 

Talk to us

 


 

More useful information

Important information

Credit criteria, fees, charges, T&C's apply. You will be required to seek independent legal advice before offering your home to guarantee a loan.

1. Credit criteria apply to the assessment of the adequacy of any proposed guarantee limit.

2. Portfolio Loan and owner-builder applications are excluded. Other exclusions may apply.

3. Advantage package Terms and Conditions apply and are available at stgeorge.com.au

The information on our website is prepared without knowing your personal financial circumstances. Before you act on this general information, please consider if it's right for you. If you need help, call 13 33 30.