Home loans

I was speaking to a friend about home loans. We were discussing the benefits of guarantor vs larger deposit.

IF you have that 20% deposit, this is probably not going to be very useful for you.. But if you're like me and not quite there then it might be.

I have approximately an 88% deposit at the moment. As I'm buying off the plan and trying to save (the no job thing is putting a bit of a damper on that) more for my deposit, I'll see what I end up with. But for now, lets use what I've got.

So, I can either pay LMI, which will be a few thousand dollars, or my darling mother has offered to guarantor my loan. This guarantee can be limited or it can be unlimited. If you're getting someone to guarantee your loan, I would recommend that you limit their guarantee. Then they're not exposed to the extent of your debt, it'll just be your property and everything else you might own that's on the line...

So, the point is, your parent can guarantee a portion of the loan, mostly your difference of deposit (to 80%) plus a little more for bank security. This is a great option for those without 80% as it will (potentially) save them that LMI - good huh?

Time

Obviously I have a lot of time on my hands. And I'm finding it hard to fill. You have so much identity tied up in your work. I mean they tell you that, but you don't really know until you're without it. I was offered a job from a past employer. He likes my work, but I don't know how stable the organisation is. But at this point does it matter? I need the job. Any job really and this will be a good one. But I don't know about salary, conditions, anything really. But he's pretty ad hoc by nature, so that's not unusual. But I'm still freaking out a little.