A single buyer on $120,000 with only $35,000 saved, but parents in Five Dock who own their home outright and want to help.
Yes, with some lenders. Many decline retired guarantors, but others accept them if the guarantee is limited, the parents own their home with enough equity and they take independent legal advice.
Their income matters less when the guarantee is small and secured against a home they own outright.
Part of the first home buyer loans guide.
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How a parent’s equity can stand in for the deposit, often with no LMI.
With a family guarantee covering that portion, you could potentially buy with your $30,000 and no LMI. Costs assume NSW first home buyer duty.
Limited to this portion, secured against the guarantor’s property, released once you reach 20% equity, subject to lender approval. Indicative only, not credit advice.
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A huge thank you to Charlie for his exceptional support and expertise throughout the process of securing finance for my first home.
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The guarantors' age and income are the pivot. The structure has to be a limited guarantee, capped at roughly the gap between the buyer's deposit and 20% plus costs, never an open-ended one.
Some lenders decline retired guarantors flat; some accept them with a limited guarantee secured only against a defined slice of the property; most that accept will require the parents to take independent legal advice, and some require financial advice too.
The buyer's servicing on the full loan, the guarantee helps the deposit problem, never the income problem; this loan must be carried by the buyer alone. The parents' equity position and what a worst case would mean for them.
Which lenders on the panel accept retired guarantors, on what conditions, and how each structures the release. And the exit: at what loan balance or property value the guarantee can realistically be released, and roughly when.
A guarantee from retired parents is legitimate and common, but it concentrates family risk and deserves honesty: if the buyer defaults, the lender can call on the guaranteed slice, and "it won't happen" is not a plan.
The protections that matter are the cap on the guarantee, the parents' independent legal advice, a servicing position with real headroom, and a written release trajectory. A broker's job includes saying no when the file only works on optimism.
"The bank said no" frequently means "that lender's policy said no", retired guarantors are a policy question, and policies differ widely.
If your family is considering this, start with the release plan rather than the purchase: how and when the parents get their title back is the number that makes the conversation straightforward.
The guarantor calculator shows how the equity substitutes for cash, and the gifted deposit guide covers the alternative where parents prefer to give rather than pledge.
At some lenders, yes, with conditions: the guarantee is limited, secured against their property, and the lender considers their position and independent advice. Other lenders decline retired guarantors outright, so lender choice decides feasibility.
The guarantee is limited to a set portion of the loan, secured against their property. It is not open-ended, and it can be released once the loan reaches the required equity. Family guarantees covers the mechanics and the risks.
Typically once the loan balance falls to the point where the property alone secures it, commonly around 20% equity, whether through repayments, value growth or both.
Thirty minutes with Charles: whether a guarantee suits your parents, which lenders accept their situation, and the release plan in writing.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
This is an illustrative example scenario, not a description of a specific client and not a testimonial. The figures are realistic but rounded, no lender is named, and no outcome is promised, every application is assessed on its own facts. General information only, not credit or financial advice.
Official sources for the figures on this page: Revenue NSW, First Home Buyers Assistance Scheme. Scheme rules change; the official pages are the final word. Checked against these sources on 12 October 2026.
