Client Overview
A newly married couple approached us seeking guidance on purchasing their first home. At the time, they were living in a rented apartment while both working full-time.
The husband worked as a product manager for a pharmaceutical company, while the wife worked as a teacher on a casual income. Despite their strong work ethic and ongoing savings efforts, they felt they were constantly falling behind the property market due to rising prices.
Like many first home buyers in expensive markets, they believed that saving a full deposit would take many more years.
The Challenge
The couple had been saving consistently but found it increasingly difficult to keep up with rising property prices. Each time they managed to build their savings, the market seemed to move further ahead.
They were concerned that without a large deposit, home ownership would remain out of reach for a long time.
Additionally, the wife’s casual income added another layer of complexity when assessing borrowing capacity. They were unsure whether lenders would view their financial situation favourably.
Our Approach
After reviewing their situation, we explored a range of possible strategies that could help them enter the property market sooner.
During the assessment, we discovered that the female applicant’s parents owned an investment property with substantial equity. This opened the possibility of using a family guarantee structure, where the parents could provide a limited guarantee secured against their property.
This strategy allowed the couple to proceed with purchasing their home without needing to save the full 20% deposit themselves.
We carefully explained the structure to both the clients and the guarantors, ensuring everyone understood how the arrangement worked and what responsibilities were involved.
The Process
The family guarantee structure required several important steps.
First, we confirmed the equity position in the guarantor property and arranged for a valuation. The lender then structured the loan so that part of the guarantee was secured against the parents’ property while the remaining portion of the loan was assessed based on the couple’s borrowing capacity.
Because guarantor loans involve additional responsibilities, the parents were required to obtain independent legal advice before proceeding.
Once all documentation was completed and the necessary approvals were obtained, we submitted the application to the lender. The loan was fully assessed and approved after careful review by the bank.
With finance in place, the couple began searching for their first home. With the support of a buyer’s agent, they were able to secure a suitable property within approximately two months.
Financial Snapshot
Before working with us, the clients believed they would need to save a large deposit before entering the market. By using a family guarantee secured against the parents’ investment property, the couple were able to proceed with their purchase without needing to contribute a full 20% deposit themselves.
This strategy allowed them to move from renting into home ownership much sooner than expected.
Before vs After
Before
• Renting and struggling to save a full deposit
• Concerned about rising property prices
• Believed home ownership was many years away
• Limited understanding of family guarantee options
After
• Successfully purchased their first home
• Entered the market using a family guarantee strategy
• Did not need to save the full deposit themselves
• Clear pathway toward long-term home ownership
"For many first home buyers, the biggest barrier isn’t income - it’s the deposit. A well-structured family guarantee can bridge that gap safely, helping clients get into the market sooner while still protecting everyone involved."
George Rouchdi
Founder, JC Mortgages
Conclusion
With the right lending strategy and careful coordination with the guarantor family members, the couple were able to purchase their first home and step into the property market much sooner than they expected.
Two years later, the property had increased in value and the couple had made additional repayments toward their mortgage. With the improved equity position, we were able to review the loan and remove the parental guarantee from the structure.
Today, the couple owns their home independently and continues progressing toward their long-term financial goals, while the parents have been successfully released from the guarantee.
The clients were extremely happy with the outcome and grateful for the guidance that helped them move from renting into home ownership.
