Does anyone have any experience with the St George 'Family Pledge' option
Does anyone have any experience with the St George 'Family Pledge' option?
It was suggested to use but I don't really understand it. It reduces our ratio thing, which means we don't have to pay the insurance thing (very technical, I know). It uses the equity on our parents home as 'added security'. What does THAT mean? Is it used as a deposit? Does it increase our borrowing power?
And, if our parents own their homes outright, and have no mortgage, do their houses have equity? (that question probably proves how much I don't know about real estate, but anyway :p). I mean, it says equity is the difference between the outstanding balance of a mortgage, and the property value. If theres no mortgage, is there no equity? Or is the equity the whole value of the property. Not that I would 'borrow' against the whole of our parents 'equity' (or maybe :think: lol). Just wondering.
And how different is this froom a usual home loan where you bring cash as a deposit and borrow the rest straightout from the bank? How much risk does it involve on the 'guarentors' part?
Ugh. This is so confusing.
(Yes, I know, go back to the bank, talk to them. Well they're shut on a Sunday and I am impatient.)