From Fairy Tales to First Homes: How the Bank of Mum and Dad Could Help You
Saving for a deposit these days? It can feel impossible!
The Bank of Mum and Dad might be able to sprinkle a little financial fairy dust on your dream. A number of parents (or someone trusted) are stepping in to help battle the financial hurdles of first home ownership.
Keep on reading below to find out what you need to know about the Bank of Mum and Dad!
Help comes in many forms (Not Just Mum and Dad)
Just to clear things up – while it’s commonly called the Bank of Mum and Dad, financial help doesn’t always have to come from your parents. It could be a grandparent, a sibling, close family friend or anyone you trust who’s willing and able to support your first home journey.
What Kind of Help Can They Offer?
The Bank of Mum and Dad can come in many forms; this may be a gifted deposit to help you reach your savings goal faster, they could act as a guarantor using their own home equity to help you avoid costly fees, or a private family loan with flexible terms. Some families even choose to co-purchase a property together, sharing both the keys and responsibilities.
What you need to make it work?
The key to this magic making partnership, is that there’s a strong and trusted relationship. Both parties should have open, honest conversations about expectations, boundaries and financial responsibilities.
We always suggest talking to a professional about the finance side of things, our friends at Resolve Finance will be able to help you find the best option for you.
With the right support, your fairy tale ending doesn’t have to live in storybooks– it can come with a real front door, a backyard kingdom and the keys to your happily ever after.
No bank of mum and dad? No worries! Discover other ways to get those house keys in your hand.
This is not financial advice and is general information. We recommend seeking assistance from a qualified mortgage broker to help determine what’s the right option for your financial situation. Lenders terms and conditions apply. Please note this is a guide only, this information may be subject to change.
All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487