Construction Loans › Can I get a construction loan with a guarantor?

Can I get a construction loan with a guarantor?

Yes. Eligible buyers, often first home buyers, can use a family guarantor on a construction loan. A guarantee can let you borrow for land and build without a large cash deposit and avoid lenders mortgage insurance.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

A family guarantee uses equity in a relatives property as extra security, which can remove the deposit hurdle on a build. It is a serious commitment for the guarantor, so it should be entered into with clear advice and a plan to release the guarantee later. For the right family it can bring a build forward by years.

The key points

A family guarantor can support a construction loan.
It can reduce or remove the cash deposit needed.
It can help avoid lenders mortgage insurance.
It is a serious commitment for the guarantor.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.