The Problem is in the numbers you see 2% At Ezy we see 98% thats the difference
Another one of those numbers plucked out of the air?
I do not want to see parents losing there homes.
Parents where they are guarantors need to own at least 40% of the equity in the security (home,)
including the proposed loan. They also need to demonstrate affordability in the event that the primary borrower defaults.
In my experience most parents have sufficient experience and common sense to arrive at sensible risk decisions. I am not aware of a history of such secondary defaults, despite your obvious concern. Perhaps you are?