A Guarantor Loan utilities a family members property as equity to cross collateralize against your new purchase.
With this strategy, you can avoid Lenders Mortgage Insurance and you are also not required to have a deposit, your parents home equity will act as the deposit. You are still required to pay stamp duty unless you have an exemption as a First Home Buyer or any other government scheme. However, the stamp duty can also be paid using your parents property through an equity release on their property.
For example If you purchase a new home for $500,000, then your deposit to secure a loan at 80% (and avoid lender mortgage insurance) will be $100,000. If your parents’ home is valued at $800,000 , then the lender can hold your title for your parents’ , home as well as your title home.
This provides sufficient security for the lender, avoiding paying mortgage insurance, deposit and stamp duty could also be paid by accessing cash from your parents home.