Many parents get just as excited about their children’s first home purchase as the kids themselves.
Parents are often involved in helping select the property and providing advice about buying.
But with the rising costs of purchasing a property, is there an easier way to get your millennials off the couch and into their own home? You bet there is – and Astute Dee Why can help!
And it’s not available from all lenders, so come and see us for more on how we could help.
WHAT THIS MEANS TO YOUR MILLENIAL
They may be able to afford a property that better suits their needs.
It may enable them to purchase without the entire deposit saved or if they are short on the extra costs associated with buying a home.
It could remove the need to pay costly mortgage insurance - usually required when borrowing greater than 80% of the purchase price. They are still eligible for the relevant First Home Owners’ Grant.
They still need to show the bank that they can repay the mortgage without you. Your liability is limited to 20% of the purchase price and will be reduced as the loan is reduced.
HOW DO YOU REMOVE THE FAMILY GUARANTEE?
You can release the guarantee once your kids have reduced the loan amount secured by the guarantee — you won’t
be liable forever!
WHAT IF THEY DEFAULT ON THE LOAN?
If something goes wrong - the bank sells your millennial’s residence first before activating the guarantee. And even if this did happen your liability is limited to what you contributed, not the
These loans can be a great way for families to help each other when just getting started. As with any loan there are risks, so if you’re keen to get your kids off the couch and into their first home, contact us today!
Remember these loans are not available from all lenders, so come and see us for more on how we may be able to help.
ASTUTE DEE WHY
2B Francis Street,
Dee Why 2099
0414 976 865 / (02) 9984 1911
Astute Financial Management Pty Ltd
ABN 59 093 587 010 | Australian Credit Licence Number 364253
AIW Dealer Services Pty Ltd | ABN 59 153 322 420 | Australian Financial Services Licence No. 414256