Should you get help from your parents with buying a home?

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.