We regularly advice parents and individuals who intend to provide a guarantee for another person’s loan. With rising property prices often young people are unable to provide all of the required security in order to obtain home loans at competitive rates. In these circumstances mortgage brokers and banks will require that a solicitor provide a solicitor guarantee certificate of independent legal advice to confirm that the guarantor fully understands the legal consequences of giving such a guarantee.
Solicitor Guarantee Certificates are provided for a fixed price – call us on 08 8278 1779 for details. Advice can be given in person at Blackwood or O’Halloran Hill or via Skype video. We understand that often these certificates are required at short notice.
Some of the common situations where a solicitor guarantee certificate and independent legal advice is needed include:
- Parents providing a guarantee for a child’s home loan
- Home Loan Guarantee – where the borrower is contributing less than 20% of Property Value
- Husband/Wife or de facto guaranteeing the debt of their partner
- Loans to Family Trusts
This is not a simple “witness your signature” exercise, but requires that the guarantor or guarantors have read all of the provided information prior to the interview. The interviews generally take around 30 to 45 minutes stepping through our standardised process to ensure that all guarantors enter into the guarantee with open eyes and fully informed – unlike Mrs and Mrs Amadio
We understand that many guarantors will already have a very good understanding, but the lenders will still require the solicitor guarantee certificate before advancing monies. For more information please see Loans involving Family and Friends at ASIC’s MoneySmart website.