I have saved $28,000 and found a unit I would like to make an offer on… around $600,000. My income is $110,000 and the mortgage broker I spoke to suggested a family guarantee loan but when he found out my parents had a loan on their property he said it wasn’t possible. Their loan is only $90,000 and they have plenty of equity. Is what the broker said right and are there any other options available?

Nick. Hi. Thanks for your question. With the level of equity in your parents property it should be possible.
There are three options.
1) you go with the same lender as your parents
2) your parents refinance to the lender you prefer
3) you choose a Lender that will take a second mortgage on the parents house.

Each of these options have further points to discuss, but would be happy to take a call from you for a chat.

Best Regards
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN (275 536)

Hi Nick,
Ken has outlined the basics for a Family pledge.
I would invite you to my office in Baulkham Hills to look at your overall ability to afford the property and to put in place some sound strategies to assist you in meeting the loan commitment.
Getting into debt is the easy part, repaying the loan and having a life as well is the bit that needs careful managing.

Hi Nick
To answer your question, that is incorrect advice from your broker. I know of lender's who will allow a second mortgage for a Family Guarantee - I've done this recently actually. It just depends on whether or not you qualify with that particular lender.
Happy to help if you need some assistance. I'm based in VIC but work with customer's in NSW also.
Kind Regards
Caroline Pollard
Bayside Finance Solutions
0418109552