Guarantor and fixing rate

Discussion in 'Loans & Mortgage Brokers' started by Sakura, 20th Jun, 2017.

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  1. Sakura

    Sakura Well-Known Member

    Joined:
    21st Aug, 2016
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    Location:
    Sydney
    Hi,

    I have a loan with St George where my parents are guarantors. With IO rates increasing, it looks very appealing to jump on fixed P&I. I was planning on removing the guarantor as earliest as I could and I was wondering whether the guarantor can still be removed if I fixed my rates? I was looking at the 3 years fixed period. I'm probably best asking the lender, but I thought I'll try get an answer here first.

    Thanks
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Australia wide
    Technically you could remove the guarantor without changing the loan, but you had better check with them
     
  3. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
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    Location:
    Adelaide, SA
    If you're looking to remove the guarantor <80% LVR, you can do this on a fixed loan without causing a breaking of the loan etc.

    If you're looking at removing the guarantor above 80% LVR and incurring LMI, this would require a refinance application and the fixed rate will be broken, with potential break fees.
     
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