Guarantor home loan?

Hi everyone :)

So, I'm still waiting on my tax return to see what sort of loan I can secure. But I already know it's going to be pretty lousy.
I've had a few people ask me about using a Guarantor to secure a larger loan. I just wanted to get a few opinions from some more experienced investors. I'm not sure I would feel comfortable using my parents property as collateral though.
What are the pros and cons?
What are the chances of something going bad?

I just really wouldn't want anything to back-fire and have my parents in a bad situation.

Is it true I can borrow 100% using a guarantor?
Can I still get an interest only loan and offset account?
That sounds tempting because I could save the deposit money in the offset account to immediately reduce interest repayments, right?

Thanks for any help!
Appreciate it.
 
Just by the way, I have had lots of trouble with Guarantor loans lately, especially when the applicants balance sheet is a bit shakeyand its for their first home, or the guarantor is using their only asset as the guarantee. So it might be a moot point in the current credit environment.
 
borrow 100% using a guarantor? Can I still get an interest only loan and offset account? That sounds tempting because I could save the deposit money in the offset account to immediately reduce interest repayments said:
This one wont work, because you are still borrowing the same amount on net terms as if youd put your cash deposit in ?

ta
rolf
 
Haha, good point Rolf :p

Thanks for all the replies. It sounds good in theory, but I doubt I could ever put someone in that situation just in case.

Thanks.
 
My trust has a few assets in it and acted as guarantor on a property I purchased in my own name recently... it seemed to strengthen the application according to the lender!
 
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