Many parents have helped their kids get into the property market by gifting or loaning them money. Some have gone guarantor on the home loan. It is estimated that up to 60% of recent loans have mum and dad as guarantors.
In a high interest rate, declining property value market, this exposes the capital and parent's home to the risk of their children defaulting.
Understanding the children's situation and ways they could navigate tight cash flow situations will help to reduce the parents risk.
Below are some links (click on 'read more here') to further information referenced in our Probus article on being the Bank of Mum & Dad.
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