Using a parental guarantor to buy your first home removes the deposit barrier — but it does not remove the risk of overpaying or buying the wrong property. A property advisor helps first home buyers make a confident, well-informed purchase decision without paying full buyers advocate fees.
The Guarantor Advantage — and Its Limits
A guarantor loan allows a first home buyer to borrow up to 100% of a property’s value using a parent or family member’s property as additional security. This avoids the need for a 20% deposit and eliminates Lenders Mortgage Insurance. It is a powerful tool — but it means your parents’ property is at risk if something goes wrong. Getting the property assessment and price right matters more, not less, when a guarantor is involved.
Common Mistakes First Home Buyers With Guarantors Make
- Overpaying for the property because they feel the pressure to move quickly and use the guarantor arrangement before it changes
- Buying in a suburb with poor growth fundamentals because of the price they can access with the guarantor
- Not understanding the liability their guarantor is taking on — and the impact on the guarantor’s borrowing capacity
- Skipping a building inspection to keep the seller happy
- Not negotiating — assuming the asking price is the price
How a Property Advisor Helps First Home Buyers
| Service | What It Does For You |
|---|---|
| Property assessment | Confirms you are buying at fair market value — protecting your guarantor |
| Comparable sales analysis | Shows what similar properties have sold for so you negotiate from evidence |
| Negotiation strategy | Gives you a clear offer framework and maximum price before you engage the agent |
| Agent negotiation | We negotiate on your behalf so you do not get pressured or emotionally outmanoeuvred |
| Contract support | We review the contract and flag anything unusual before you sign |
Why Collings Property Advisory?
Collings Property Advisory is a fixed-fee advisory service at $4,500 + GST. We are not a buyers advocate charging 2-3% of the purchase price. We are an independent property expert who helps you make the right decision and negotiate the best outcome — at a fraction of the cost of full buyers advocacy.
FAQs
Does my guarantor need to be involved in the property advisory process?
No. The advisory service focuses on your purchase decision. Your guarantor works with your mortgage broker and lender on the finance side. The two processes run in parallel.
What suburbs should a first home buyer with a guarantor target in Melbourne?
The best suburbs for first home buyers with guarantors balance price accessibility, growth fundamentals, and rental yield (as a safety net if circumstances change). Reach out to our advisory team for a suburb assessment as part of your engagement.
Buying your first home with a guarantor? Collings Property Advisory is $4,500 + GST — fixed fee, independent, no commission. We help you buy with confidence. Learn more at collings.com.au/portal.
Find your next property with Collings
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