(02) 9893 7881

Family Pledge Loan

A family pledge loan allows a member of your family to use the equity in their home to guarantee your home loan.

In essence, a family member acts as a guarantor and puts up their property as collateral for your house loan. The guarantor is putting some of the equity on their property against your house loan by doing so.

The Benefits of Using a Family Pledge Loan

In Australia, a 20% down payment is advised to secure a house. Buyers who are unable to pay 20% of the purchase price upfront must pay mortgage insurance to the lender, which is added to the loan balance. Many people choose to wait to buy until they have enough money saved to cover the 20% deposit to avoid having to pay lenders' mortgage insurance.

A family pledge loan would be a speedier solution.

How Does A Family Pledge Loan Work?

The guarantor's equity in the property is used as security to back the loan and cover the deposit that you are unable to pay.


If you want to buy a house for $500,000, the bank will most likely finance you for $400,000 and want you to put down a 20% down- $100,000.

If you are unable to pay the $100,000 deposit, the bank will need you to pay the lender's mortgage insurance.

Assume you have family members who own a property worth $1,000,000 and have a debt of $500,000. In that situation, because there is enough usable equity, they can offer the bank $100,000 from the property's equity as security without asking the borrower to pay lenders mortgage insurance.

Loans by Reliiance Financial Solutions

We all have different needs and requirements. Let our knowledge and experience help you get the most suitable financial solution for you. At Reliiance Financial Solutions, we work with you, for you.

Talk to a Reliiance Financial Solutions expert for a consultation


At Reliiance Financial Solutions, we have been privileged to have worked with hundreds of remarkable individuals and families.

Very few things come close to receiving their genuine appreciation of our services. All we can say in return is - the pleasure was all ours.

It is also our pleasure to share some client testimonials with you. Please click on Video Testimonials to view them all. Use the buttons at the bottom of the screen to navigate through the videos.

Want a quick and entertaining snapshot of our services? Click on Services Videos and enjoy!


back to top