What is parent equity?
One of the biggest barriers you face when buying a house is saving for a deposit.
With our parent equity option, an immediate family member can 'guarantee' part of your loan by providing additional residential security (i.e. their own home) to remove the need for a deposit from you, which would usually be around 20%¹ of your total loan amount. You’ve probably heard of this as ‘going as a guarantor on a home loan’.
If parent equity is something your family member is comfortable with, it could help you achieve home ownership sooner (though you might owe them a few trays of brownies as thanks).
Parent equity can allow you to:
- borrow up to an additional 10% of the purchase price to help with associated costs, like immediate renovations or furniture
- reduce the amount of Lenders’ Mortgage Insurance (LMI) that you need to pay — or avoid the cost altogether
- borrow up to 100% of the purchase price of a property or of the combined land and building contract price when purchasing vacant land to build.²
Who can be a guarantor under parent equity?
Your guarantor will need to be:
- an immediate family member, including a parent, grandparent, or sibling
- over 18
- a homeowner with sufficient equity in their property.
How to apply for a guarantor home loan using parent equity.
Chat with a Lending Specialist to understand whether using a guarantor and parent equity is the right move for you.
Other borrowing options for low deposits.
Home Guarantee Scheme
The Home Guarantee Scheme (HGS) is an Australian Government initiative to help you buy or build your home sooner.
Learn more about the scheme
Lenders' Mortgage Insurance (LMI)
A one-off premium that can help you secure a home loan if you have a smaller deposit.
What is LMI?Saving for a deposit.
Buying your first home?
Now that's exciting! If you need a hand learning the lingo or understanding the home buying process, check out the guides, tools, FAQs, and calculators available on our first home buyer hub.
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Please read this important information.
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The guarantee and additional security must be provided by your parent(s), in-law(s) or step-parent(s). |
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Subject to the property location and licensed valuation. |
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All applications for credit are subject to Beyond Bank’s credit assessment criteria. Terms and conditions are available on request. Fees and charges apply. This information is available on our website at beyondbank.com.au/about-us/corporate-governance/disclosures, by calling us on 13 25 85 to request a copy or by visiting a branch. |
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This information is of a general nature only and does not take into consideration your objectives, financial situation or needs. The information must not be relied upon as financial product advice. Before acquiring any product you should read the relevant guides, Product Disclosure Document, and consider whether a product is suitable for your circumstances to decide if a product is right for you. |
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All products and services are provided by Beyond Bank Australia Ltd, 100 Waymouth Street, Adelaide, SA 5000, ABN 15 087 651 143 AFSL/Australian Credit Licence 237856. © 2025. |