The cost of buying a home in Australia is spinning out of control, especially if you’re looking in one of the larger metropolitan areas.
Spending more than a decade’s pay on one single purchase is not feasible for most Australians. Some, when they can’t afford to buy new homes themselves, get help from their parents instead. Is this a wise idea? If you’re considering asking your family for financial assistance, what are the pros and cons you need to consider?
A diverse range of options
The good news about getting help from your family is there’s a wide range of ways to do it:
- The down payment: Some mums and dads simply gift their kids a large stack of cash to make the deposit on a home, then trust them to handle the mortgage repayments from there.
- A family loan: Loans from your parents are always better than from a bank; parents can offer lower (or no) interest rates and be more forgiving about repayments.
- Acting as co-borrower on the mortgage: If your income is too low to qualify for the mortgage you want, your parents can go in as a co-borrower.
Getting home loans that will really help
The real estate landscape is complicated, and making a poor decision can set you back financially for a long time. If you work with us, we’ll give you all the insights you need to make smart decisions that will help you get onto the property market.