Quote:
Originally Posted by PoktRokt
No it doesnt effect it, they are only there if you cannot repay the mortgage, it doesnt effect your personal credit rating or anything, 99% the guarantor never has to come into effect (repay the mortgage) thank goodness!
EDIT: I had to look in to this as I was considering going Guarantor for someone.
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I think they meant to use your parents property as security so the amout of the loan is less than 80% of the value of the two properties combined (less any thing that they may owe).
eg your potental place $100K, $10k in savings and $90K loan = mortgage insurance.
Include your parents place $100K and they still owe $10K. Situation is now property value combined is $200K, loans $100K (both combined) and the loan ratio is 50% so no mortgage insurance.