Love the kids and want to help them into a home?
To save for a home purchase can be extremely challenging, especially for young couples and families. Unfortunately, housing affordability continues to be a significant issue for many Australians with Coffs Harbour recently recognised as one of the least affordable cities in the world in which to buy.
At present, many young buyers turn to their parents or family members for assistance by way of a loan so they may afford to purchase a property. However, this set up can be problematic for the parents or family members providing financial assistance especially if the loan is not being paid on time or in some cases, not being paid at all. The fallout can be messy with the asset sold and half of the loan amount disappearing into thin air.
There is a better way!
Families may wish to consider a Parent-to-Child (P2CTM) loan. This helps young buyers by:
- Allowing them to borrow up to 105% of the property value
- Not requiring them to pay LMI (Lenders Mortgage Insurance)
- Allowing them to borrow at better rates than those offered by the bank
To find out more about the Parent-to-Child (P2CTM) loan, talk to one of our home loan brokers today.