S2E27 - Parental Guarantors Explained: What Mum and Dad Are Really Signing Up For

Parental guarantors, explained in plain English. Imti breaks down exactly what mum and dad are agreeing to when they help a child buy property - using equity, not cash, to help cover the deposit and avoid lender's mortgage insurance. Skye grills him with the parent's real-world concerns (can the bank take my house? what if I still have a mortgage? what about multiple kids?), while Pete digs into how it works for investment property purchases. The key message: a guarantor solves a deposit problem, not a borrowing capacity problem - and for most families, it's a shorter, less risky commitment than people assume.

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First Time Property Investor is for Australians who want to invest in property but feel stuck between too much information, conflicting advice, and the fear of getting it wrong.
Get honest conversations, practical insights, and clear strategy to help you avoid costly mistakes and move forward with confidence.
Hosted by Imti, Pete and Skye, with insight from the finance, buying, sales and property management sides of the industry.

• (00:00) - What a parental guarantee actually is (Tom's example)
• (02:24) - Is the parent liable? What happens if the child defaults?
• (05:02) - Do parents need to own their home outright?
• (06:06) - Can you guarantee for multiple children?
• (06:49) - Using a guarantor for an investment property
• (08:22) - Managing risk — legal advice and setting expectations
• (10:02) - How parents get released from the guarantee
• (11:39) - The biggest risks: cash flow and asset selection