Buying your first home is one of life’s biggest milestones — but for many Australians, saving a 20% deposit while paying rent feels like an endless treadmill. Reece and Amelia, a young couple in Queensland, found a smarter path to home ownership by using a guarantor loan strategy that eliminated costly Lender’s Mortgage Insurance (LMI) and put them in a strong negotiating position from day one.
The Challenge
Reece and Amelia were ready to enter the property market and had identified a unit in Clayfield, QLD as their target. Like many first-home buyers, they faced two common obstacles: their deposit wasn’t large enough to avoid LMI, and without pre-approval, they risked missing out in a competitive market. They also had a previous experience with a mortgage broker who couldn’t move quickly enough — leaving them frustrated and anxious to find a more proactive solution.
Our Strategy
Victor Lagos at Lagos Financial structured a guarantor home loan using Reece’s mother’s property as additional security. This approach meant the couple didn’t need a large cash deposit of their own — the equity in the guarantor property bridged the gap, effectively removing the need for LMI entirely.
After reviewing products from multiple lenders, Victor recommended St. George Bank for their flexible guarantor loan policies and competitive terms. The loan was structured as a 30-year principal and interest loan with an offset account, giving Reece and Amelia the tools to reduce interest costs over time. A variable rate was selected at their request, keeping their options open for future refinancing.
Before they started making offers, Lagos Financial secured pre-approval for the couple — a critical step when buying a property in a competitive suburb. Pre-approval clarified their exact borrowing power and signalled to sellers that they were serious, well-prepared buyers.
Victor also outlined a clear 6-month roadmap: once the property’s value had grown sufficiently, the plan was to reassess and potentially refinance to remove the guarantor arrangement — freeing Reece’s mother’s property from the security obligation.
The Outcome
Reece and Amelia successfully purchased their first home — a unit in Clayfield, QLD. By using the guarantor loan structure, they saved over $10,000 in LMI costs that would otherwise have been added to their loan. With the offset account now in place, they’re already working towards building equity and paying down their loan sooner than a standard repayment schedule would allow.
Reece and Amelia had this to say about working with Lagos Financial:
“We came to Victor after a previous experience with a mortgage broker who couldn’t get things moving for us as quickly as we wanted. Working with Victor, it was like day and night. He is proactive, genuine, and incredibly good at his job. He made us feel supported the whole way through. I’d recommend him in a heartbeat.”
Key Takeaways
- Guarantor loans remove the LMI barrier. If you have a family member willing to use their property as security, you can enter the market sooner and save thousands in upfront costs.
- Pre-approval is a competitive advantage. In a busy market, knowing your borrowing limit and having a conditional approval in hand makes you a far more credible buyer at the negotiating table.
- Offset accounts accelerate debt reduction. Parking savings in an offset account reduces the interest calculated on your loan daily — a small habit that can shave years off your mortgage.
Could This Strategy Work for You?
Every client’s situation is different. Lagos Financial works with 60+ lenders to structure the right solution for your goals. Book a free strategy session to discuss your options.
About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.
Victor Lagos
Founder & Mortgage Broker, Lagos Financial
Victor Lagos is a licensed mortgage broker and property investment strategist. As founder of Lagos Financial, he helps Australians build wealth through tailored finance solutions, working with 60+ lenders nationwide. He also hosts the Debt to Financial Freedom podcast.
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