Buying a home has become a family affair, with research showing the extent to which parents are providing financial assistance to their children.
Mortgage Choice research shows nearly 60% of respondents will consider gifting or lending money to their children to help them buy a home.
With property prices continuing to rise, home ownership assistance from “the Bank of Mum & Dad” is welcome news for young Australians.
Mortgage Choice CEO Susan Mitchell says: “We’re used to doing what we can to help our children achieve their goals. In a market recording such phenomenal growth, it’s perfectly understandable that parents look for ways to help their kids buy a home, whether that be as a guarantor or providing a gift for their deposits.”
The latest CoreLogic Hedonic Home Value Index reveals national dwelling values rose 2% in April – 10.2% higher than the COVID low in September 2020.
A majority of respondents (53%) say they would go guarantor on a home loan for their child. A further 45% say they would consider using the equity in their home to help fund their child’s first home purchase.