In 2026, family guarantee loans are giving Logan, QLD parents a way to help their adult children buy their first home without handing over cash. Whether your child is looking in Springwood - Beenleigh or Loganholme , using your property as additional security can eliminate the need for lenders mortgage insurance (LMI) and reduce the deposit burden significantly.

The difference is meaningful. Instead of your child needing a 20% deposit to avoid LMI, they might need as little as 5% when your property backs the loan. That's the difference between needing $150,000 and needing $37,500 on a $750,000 purchase - and no cash changes hands between you.

Cube Loans helps families across Logan, QLD structure family guarantee arrangements across 60+ lenders, completely free of charge.

Here's what you need to know before approaching a lender about guaranteeing your child's home loan.

How do family guarantee loans work?

A family guarantee loan uses your property equity as additional security for your child's mortgage, which means they can borrow up to 100% of the purchase price without paying LMI. You're not borrowing any money yourself, and no cash leaves your account - your property simply acts as backup security for a portion of their loan.

Most lenders limit your guarantee to 20-25% of the purchase price rather than the full loan amount. The exact structure depends on your equity position and which lender you choose, which is what we work through with you in a free consultation.

What government schemes can help first home buyers in Logan, QLD?

• Queensland First Home Owner Grant:$30,000 for new homes under $750,000 (reducing to $15,000 from 1 July 2026).
• Queensland Transfer Duty Exemption:$0 stamp duty on all new homes as of April 2026, no price cap.
• First Home Guarantee: 5% deposit, no LMI, up to $1,000,000 in Logan, QLD through approved lenders.
• Family Home Guarantee: 2% deposit for eligible single parents, up to $1,000,000 price cap.
• Queensland Boost to Buy: shared equity scheme with 2% deposit for eligible first home buyers earning under income caps.

• Cube Loans Like to know if a family guarantee suits your situation? Every family's equity position and goals are different. A free chat with a Logan mortgage broker gives you a clear picture of your options — no commitment, no pressure. Free 15-min chat 60+ lenders No obligation Book a free chat today →

How do we set up a family guarantee loan in Logan, QLD?

Step 1: Talk to us

Get in touch and we'll assess whether a family guarantee suits your family's situation and which lenders offer the most suitable terms for your goals.

Step 2: Review your equity position

We arrange a valuation on your property to determine exactly how much equity is available and what guarantee amount makes sense for your child's purchase.

Step 3: Compare lender policies

Different lenders have different guarantee limits, exit conditions, and approval criteria. We identify which lenders give your family the strongest outcome.

Step 4: Structure the guarantee

We work with your child to determine the optimal loan structure - how much they borrow, what deposit they contribute, and what portion you guarantee.

Step 5: Lodge the application

We coordinate the application across both properties, ensuring all documentation is correct and the process moves smoothly through approval.

Step 6: Plan the exit strategy

We discuss when and how your guarantee will be removed - typically when your child has built enough equity through repayments and property growth to refinance independently.

What mistakes do families make with guarantee loans?

The biggest mistake is not planning the exit strategy upfront. Your guarantee isn't permanent - most families want it removed within 2-5 years once their child has built enough equity. Different lenders have different rules about when and how guarantees can be released, so choosing the right lender matters.

The second mistake is guaranteeing more than necessary. You only need to guarantee enough to avoid LMI - typically 20-25% of the purchase price. Guaranteeing the full loan amount creates unnecessary risk without additional benefit.

Can you guarantee an investment property purchase?

Most lenders only allow family guarantees for owner-occupier purchases, not investment properties. This is designed to help first home buyers rather than property investors. A few specialist lenders do offer investment guarantees, but the terms are typically more restrictive.

If your child wants to buy an investment property first - known as "rentvesting" - they'll lose access to the First Home Owner Grant and First Home Guarantee scheme. The family guarantee becomes their main pathway to avoid LMI.

• Cube Loans Ready to find out which lender offers the best guarantee terms? We compare loans from 60+ lenders across Logan, QLD. Free service, no cost to you. Free 15-min chat 60+ lenders No obligation Book a free chat today →

Frequently Asked Questions

Do I need to pay anything upfront for a family guarantee?

No, you don't pay any cash upfront. The guarantee uses your property equity as security, but no money leaves your account when the loan settles. Your child pays all loan costs and repayments.

What happens if my child can't make repayments?

You become responsible for the guaranteed portion of the loan, typically 20-25% of the original purchase price. This is why choosing the right child and having honest conversations about their income stability matters.

Can I sell my house while the guarantee is active?

Most lenders require the guarantee to be cleared before you can sell. Your child would need to refinance independently or find alternative security, which is why planning the exit strategy upfront is important.

How long does the guarantee stay in place?

It depends on the lender, but most families remove guarantees within 2-5 years once the child has built sufficient equity. Some lenders allow automatic removal once the loan-to-value ratio drops below 80%.

Can more than one child use my guarantee?

Not simultaneously. If you want to help a second child after the first guarantee is removed, you'll need to wait until your equity is free again or structure the loans differently.

Should I use a mortgage broker or go direct to my bank?

A mortgage broker, every time. Family guarantee terms vary significantly between lenders - some limit guarantees to 20%, others allow 25%, and exit conditions differ substantially. We compare all options to find the best fit for your family.

What's the difference between a family guarantee and gifting money?

A guarantee uses your property equity without any cash changing hands. Gifting requires you to actually transfer money to your child, which reduces your own available funds and may have tax implications.

Your Next Steps

Getting a family guarantee right is about more than finding a willing lender. The guarantee limits, exit conditions, and approval criteria vary significantly across our 60+ lender panel - which is exactly what a broker comparison is designed to find for your family.

Ready to find out which lenders give families the strongest guarantee terms? Contact Scott Beattie or Nevada Matthews for a free consultation or call 1800 774 756. We'll assess your equity position and your child's goals across our full lender panel and identify the most suitable options for your situation.

Cube Loans · Loganholme and Logan, QLD · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.