It’s Official! There is now a simple mortgage product especially for parents who want to help their kids get on the property ladder. The difference is, it doesn’t involve risky re-mortgaging or bank guarantees.
How does it work?
Essentially parents become investors in the property. The parents decide how much to invest, over how many years, and the interest rate. Parents typically receive the bulk of the mortgage interest every month as a kind of “dividend.”
What are the benefits for parents?
There’s no need to re-mortgage
There is no risky bank guarantee
There’s no risk to other savings
Parents remain in full control – at any time they can waive or “forgive” the loan
The contribution is formally and legally documented, and independently managed
Parent can invest individually, via company or family trust entities
What are the benefits for the children buying their first home?
You can still qualify for the First Home Owner Grant
You are still eligible for any stamp duty concessions
You have more purchasing power
The loan rate is typically lower
Both sets of parents can contribute / invest in your mortgage (you and partner’s)
There aren’t any restrictions on the type of home you can buy
The loan is independently managed and your parents’ contribution legally documented
Get in Touch
If you are interested in helping your children to purchase their home or if you think your parents would be interested in this innovative mortgage solution, drop me a line – 0466 392 892 or email me anytime.