After Renovation – Kitchen
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Struggling to save enough to buy a property? You may want to ask your family if they can provide a helping hand in the form of a family guarantee loan. This is when the equity in a family member’s home is used as security on your loan.
Also known as a family pledge or guarantor home loan, it is a type of mortgage that allows you to borrow more money and provide less of a deposit. Usually when a loan is more than 80% of the purchase price (80% LVR) you will have to pay lenders mortgage insurance, but a family guarantee means you won’t have this extra expense.
It’s even possible to avoid paying any deposit because the equity in your family’s home can act as a deposit. This ‘guarantee’ makes it possible for you to borrow the full 100% cost of the home, plus stamp duty and legal fees. Lenders mortgage insurance will still be payable if you borrow over 80% of a property’s value.
There are many issues to consider when taking out family guarantees and it pays to keep in mind that loan terms and conditions can vary between lenders. Not all lenders even offer these type of loans, so give us a call and we can advise you which lenders would best suit your situation.
Here are some of the common questions we get asked about guarantor home loans. For more detailed information about any of the following, don’t hesitate to get in contact.
Does the entire loan have to be guaranteed?
No, the loan can be split, enabling the equity in your family’s property to be used as security for a small portion of the loan, for example 20%. The lender will take a mortgage out over the guarantor’s property to this specified amount.
Who can act as guarantors?
Guarantors are usually parents, but some lenders under certain conditions will accept grandparents, siblings, a de facto partner or a former spouse. To be approved by a lender they must provide enough equity to cover the amount being guaranteed and in most cases do not need to show proof of income. Normal lending criteria will apply in all circumstances.
What are the risks of a guarantor home loan?
There are risks involved, which is why it is important for the guarantor to know what they are getting into. Some lenders even require legal advice is sought to ensure the guarantor understands that if there is a default on repayments, they will be the ones held liable.
How long does the guarantee have to be in place?
If the guarantor home loan is structured correctly, the guarantee doesn’t need to be in place for the entire duration of the loan. Once you have repaid the portion of the loan that is guaranteed or your property has increased in value, the guarantor can be released.… Read More
So you have just purchased your home but when you first looked at it, you didn’t realize just how bad the traffic noise in the backyard really was. Now you are committed to a 30-year mortgage and asks “What can I do Dr. Bob? Well, I’m glad you asked.
You can construct a soundproof or a sound-control fence. Now will this fence block 100% of the traffic noise? I’m afraid not, but will it make your backyard life tolerable? You bet it will.
There are some things that you need to know about building an effect sound control fence that will make it more effective. First and foremost, you new sound control fence needs to be 8 ft above the noise source. Now you need to check with your city or township to see if they have height ordinances regarding fences. If they will only allow a 6′ high fence, you can always build an earthen berm to increase the height of the backyard where the fence will be erected.
Now lets talk about the fence itself. I recommend building a cedar or redwood slatted fence as high as possible, (8ft being the minimum height above the noise source). The term “Above the noise source” means simply this, if the noise is coming from an automobile muffler, then the fence technically needs to be 8′ above the cars tailpipe. This should be simple enough. If you fence isn’t exactly 8′ above the noise source will it not be effective? Of course it will, but at the 8′ level you will get the best sound blocking.
Let’s talk about constructing your fence. The new redwood or cedar fence will have at least 4″ X 4″ posts mounted in concrete footings and sunk at least 2 ft into the ground. You will want as stable a foundation as possible for your new sound control fence as you will be adding heavy sound blocking agents to it. Once the posts are set and the concrete has cured, you will then add the fence cross members. These are generally 2″ X 4″ beams that connect the posts together and offer extra support for the fence slats. Now once the fence framing is complete, you will then be ready for the soundproofing membrane to be installed. You will have already called the professionals at Soundproofing America and ordered a product called “mass loaded vinyl”. Mass loaded vinyl is a loaded vinyl soundproofing barrier that comes in rolls that are 35’x 4′ or 30′ x 4 ½’. Once you have your rolls of mass loaded vinyl and the acoustical caulk and tape that go with the MLV, you are ready to install the soundproof membrane for your new fence.
Your first step is to stretch the MLV along the frame of the fence, you want to make sure the that the MLV extends all the way down to the ground so that the sound does not leak though the bottom of your fence. Once the MLV … Read More