Parents assisting their children to buy a home

August 12, 2014
Jacqui Kerr

Are you finding it difficult to get into the property market?

  • Low interest rates are keeping affordability within reach of many however the savings requirement has never been more challenging.
  • Home buyers unable to make a substantial contribution towards their purchase are likely to incur a substantial premium for lender’s mortgage insurance and are increasingly also being hit with a higher interest rate.

Many parents wonder how they can assist.

Here are a few options:

  • A non repayable gift.  
  • A range of lenders allow parents to offer their own home, investment property or a term-deposit to the lender as additional security.
  • In an innovative solution, parents can assist their children with any amount up to the full purchase price and have their contribution secured by way of a registered mortgage. This can be viewed as an investment, with parents setting the interest rate.Arrangements for repayments will be formalised and managed on behalf of the parents,

Why you need to call Mortgage Choice Beaumaris:  We take the time to understand your individual requirements and will arrange the right option for you, so you too can know the feeling of owning your own home! - 

Come and visit us at 4 East Concourse, Beaumaris or call us on 9589 1329

Posted in: First home buyers

Contact us today.

Additional Comments? * :