Solicitor Certificates

Solicitor's Certificate FAQs

Many people enter into Guarantee Agreements to secure a home loan for their child, or as part of various business transactions. The potential borrower will either need to take out Lender's Mortgage Insurance, or ask someone to guarantee the home loan.

What is a Solicitor's Certificate of Guarantee Advice?

A solicitor’s guarantee advice is a method of demonstrating to the lender that the potential guarantor does indeed know and understand what they are guaranteeing, that they have the capacity to guarantee the loan and that the potential guarantor understands the legal consequences of agreeing to guarantee the loan.

Put simply, a solicitor’s certificate of guarantee advice reflects that the lender understands their responsibility to guarantee the loan.

Why do I need Guarantee Advice?

Firstly, it is a requirement of the lender. Where a guarantee is being given, that guarantor will require a Solicitor's Certificate.

Independent advice and a Solicitor's Certificate will commonly be required where.

• Parents are providing a guarantee for a child's home loan;
• A borrower is seeking a home loan, but contributing less than 20% of the property value;
• A husband, wife, or de-facto spouse are guaranteeing a debt for their spouse or partner;
• There are loans made to a family trust; or
• A director of a company is required to guarantee that company's loan.

How much does guarantee advice cost?

Please get in touch to receive a quote. A Solicitor's Certificate of Guarantee Advice is a service which few firms in Adelaide provide. As such, costs will vary, however a discount is generally applied where there is more than one guarantor.