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.
 | Gifting to the kids as an age pensioner could impact your government benefits and care costs. Read more here... |
 | Early access to superannuation may be available under compassionate rules to cover the home loan repayments and to prevent the loss of the home. Read more here... |
| Home Equity Access - there are a number of ways to withdraw some of the equity out of your home without having to sell it. Read more here... |
 | How will this impact the estate and the equitable sharing of wealth with all loved ones. Read more here... |
If you have any quesitons, please contact us either via the form below or calling on 02 8013 5205.
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