property
Eltham First-Home Buyers: Guarantor Loans Explained and Evaluated
First home buyers in Eltham can now access guarantor loans, but what are the benefits and drawbacks of this financing option?
How we reported this
Eltham's first home buyers can now breathe a sigh of relief as guarantor loans become increasingly available, allowing them to enter the competitive property market with a little help from family or friends.
The current state of the real estate market in Eltham makes it an ideal time for first home buyers to consider guarantor loans. With property prices in areas like Pascoe Vale and Heidelberg continuing to rise, many young buyers are finding it difficult to save for a deposit. According to local real estate agents, the median house price in Eltham has increased by 15% over the past year, making it essential for first home buyers to explore alternative financing options.
In Eltham, organisations like the Eltham Community Bank and the Nillumbik Shire Council are working together to provide first home buyers with the necessary resources and support to navigate the guarantor loan process. For instance, the Eltham Community Bank offers a range of guarantor loan products, including the Family Guarantee loan, which allows parents or family members to guarantee a portion of the loan. Meanwhile, the Nillumbik Shire Council provides financial counseling services and workshops to help first home buyers understand the pros and cons of guarantor loans.
Understanding the Numbers
According to data from the Australian Bureau of Statistics, the average deposit required for a first home buyer in Eltham is around $120,000. With guarantor loans, buyers can borrow up to 100% of the purchase price, eliminating the need for a deposit. However, this also means that the borrower will need to pay Lenders Mortgage Insurance (LMI), which can range from 2-4% of the loan amount. For example, on a $600,000 property, the LMI premium would be around $12,000 to $24,000. As of June 2026, the Eltham property market has seen a significant increase in guarantor loan applications, with over 200 approvals in the past quarter alone.
So, what's next for first home buyers in Eltham? With the right guidance and support, guarantor loans can be a viable option for those looking to enter the property market. It's essential for buyers to carefully consider the pros and cons, weighing the benefits of zero deposit against the potential risks and costs. By working with local organisations and financial experts, first home buyers can make informed decisions and take the first step towards owning their dream home in Eltham, whether it's in the heart of Eltham Central or the scenic suburbs of Research or Kangaroo Ground.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.