When the home loan is reduced to an amount that is less than 80% of the market value of the purchased property (as determined by an independent valuation conducted by an IMB panel valuer), the guarantor may request that IMB release the guarantor from their guarantee. Reaching a less-than-80% loan-to-value ratio can occur if the purchased property value increases over time and the loan is paid down by principal and interest repayments. Equity in the home will increase and the loan-to-value ratio will decrease.
However, IMB retains sole discretion in deciding whether or not a guarantee will be released. Alternatively, the guarantor can end the guarantee at any time by paying the guaranteed amount to IMB. Speak to our team on 133 462 to explore in more detail.
