Bank of Mum & Dad: Proceed with caution!
The great Australian dream of owning property has become a tall order for first-time home buyers. And with the soaring cost of living, saving for a deposit isn’t getting any easier.
As a parent, you may be thinking about tapping into your savings or home equity or going Guarantor to help your children secure a home loan. You’re not alone. Parental contribution is on the up, with parents contributing around $90,000 per child on average*, a 20% increase on the previous year. The ‘Bank of Mum and Dad’ has become Australia’s 9th biggest mortgage lender.
Like all financial decisions, there can be some risks and important considerations to weigh up before stepping in to help. And making sure you understand the impact on your finances and your future is key.
