Greenacre homes hold more people than the NSW average. When parents help an adult child buy, the first decision is whether they back the loan as guarantors or share the title as owners.
A guarantee keeps the home in your child’s name: your equity secures part of their loan, usually with no mortgage insurance, and it is released later. Which suits depends on who will live there and how the family wants ownership split.
Buying together puts both generations on the title and the loan, so both incomes count but both carry the debt.
Terraces and semis are a familiar sight in Greenacre, at 29.3% of the housing. Heritage controls on some streets limit what can be changed, which matters if the plan is to renovate with the loan. Greenacre is house country: 63.1% of dwellings are freestanding, against 65.6% for NSW. A house on its own title is the simplest security a lender takes, and the land carries most of the value.
Separate housesTownhouses and semisApartments
apartments NSW 21.7%
separate houses NSW 65.6%
terraces and semis NSW 11.7%
rented NSW 32.6%
with a mortgage NSW 32.5%
private dwellings
Source: ABS Census 2021, Suburbs and Localities (SAL11763).
Home equity calculator
For upgraders and investors, how much of your home could work as a deposit.
That usable equity could work as a deposit on an investment property or renovation, structured so your properties aren’t tied together unnecessarily.
Usable equity assumes lending to 80% of your home’s value against your current loan. Lender policy and serviceability decide the real figure.
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Charles went above and beyond to help us secure our home loan. He worked hard to find the best option for us and kept us updated throughout the whole process. His knowledge of the lending market was impressive and he made everything straightforward.
Had a really good experience with Charles at Links Property Finance. He was easy to deal with, always quick to respond and kept everything simple and clear throughout the whole process. You can tell he genuinely cares about getting the best outcome for his clients rather than just getting things done quickly. Really happy with the experience and would happily recommend Charles and Links Property Finance to anyone.
I honestly couldn’t recommend Links Property Finance and Charles highly enough. After speaking with others who weren’t able to help me, Charles went above and beyond to understand my situation…
Parents and buyers together for about thirty minutes, with no documents. Charles explains what a guarantee asks of each person, how a joint purchase is assessed and which route suits your Greenacre plans. It costs nothing and leaves your credit file untouched.
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Charles calls back within one business day. No documents needed yet.
Charles Touma, Mortgage Broker.
Greenacre has no railway station, so buses provide the link to Strathfield Station. Route 914, a weekday service, starts at the Greenacre shops on Waterloo Road and travels by way of Roberts Road and Liverpool Road to Strathfield.
Route 913, between Strathfield and Bankstown, stops at Chullora Marketplace on Waterloo Road, in the north of the suburb, and on Hillcrest Avenue.
The Burwood to Liverpool route calls at the Boronia Road shops and also reaches Strathfield Station and Westfield Burwood. Liverpool Road and Rookwood Road run along the northern and western sides.
Three ways parents help a purchase along, and what each one asks of them.
Parents offer a set slice of their home’s equity as security for part of the loan.
The buyer can often avoid lenders mortgage insurance this way, and the guarantee can come off once the buyer’s own equity is high enough. Guarantors should take independent legal advice before they sign. Estimate the amount.
Money given outright, backed by a signed letter confirming it never has to be repaid and a clear record of the transfer. The parents’ home stays out of it, but the cash is gone for good. Using a gifted deposit.
Parents and children both borrow and both own. Several incomes can lift borrowing power, but each borrower is liable for the full debt, and living costs for the whole household are counted. Put every person’s share and contribution in writing.
Joint tenants own the whole property together, and it passes to the survivors when one owner dies. Tenants in common hold set shares that can be left by will. Families with uneven contributions often look closely at the second option, and that choice belongs with your solicitor.
Charles Touma runs each Greenacre application personally, including the first call with parents and buyers, the lender submission and settlement. There is no call centre in between, so a guarantor with a question speaks to the broker handling the file.
One. Everyone on one call. Buyers and parents together, about thirty minutes, no paperwork yet. The aim is to learn who is helping, in what way, and how much each person is prepared to commit.
A guarantee is meant to be temporary. Regular repayments, extra repayments and any rise in the property’s value all move that point closer.
It can usually be removed once the buyer’s loan is small enough, relative to the property’s value, that the lender no longer needs the extra security, which is commonly around the point where the buyer holds about 20 per cent equity.
Parents pledge a share of the equity in their own property as added security for a portion of the buyer’s loan. That security can let the buyer borrow more of the price without a full 20 per cent deposit, often without lenders mortgage insurance.
Yes. Buying together is one way a family can afford more space, and more than a third of Greenacre homes have four or more bedrooms.
Usually once your loan has fallen to around 80 per cent of the property’s value, so the lender no longer needs the extra security. Repayments, extra repayments and any increase in value all help get there.
Their exposure is capped at the guaranteed amount, plus any interest and recovery costs the guarantee document allows, rather than the whole loan.
Often, yes, because a guarantor is providing security rather than the income that repays the loan. The lender will still look closely at the parents’ own position, how much of their home is exposed and whether they have taken independent legal advice.
General information only, not credit or financial advice. Lender policies and government scheme criteria differ and change over time. All lending is subject to individual assessment and approval.
