A loan guarantor, in the context of a low deposit home loan, is usually a close family member (very likely one or both of the intending borrower’s parents) who is prepared to offer as additional loan security a property they own outright, or have substantial equity in. The lender will usually take possession of the guarantor’s property title deed, and put on it a charge for the required amount of security. For example, the likely charge against the guarantor’s title would be $75,000 for a loan against a property valued at $500,000 where the borrower had only a $25,000 deposit. This charge would remain on the loan guarantor’s property title deed until the principal of the loan they were guaranteeing fell below $400,000, as a result of the borrower’s repayments. At this point the borrower and guarantor could request the removal of the charge and the return of the now unencumbered title deed. Guaranteeing a low deposit home loan is not something to be undertaken lightly, since there is a risk of substantial financial loss if the borrower defaults on the loan, but it is something that many parents are prepared to do for their children.