With rising inflation, interest rates hikes, increasing costs of living, and a property market boom - it should come as no surprise that the “Bank of Mum and Dad” in Australia (parents lending directly to their children to help with homebuying) is estimated to be collectively worth about $35 billion, making it the nation’s ninth-largest mortgage lender.
It’s understandable why so many choose to help in this way. It allows their children to enter the property market when they might otherwise be unable to, can remove the need for Lender’s Mortgage Insurance, and can help them secure a better interest rate. It’s also a benefit to many parents to be able to help their children now, rather than leaving funds in their Will.
There are two common ways for parents to help their children; to gift or loan them money for a house deposit, or to act as guarantors on a home loan.
Unfortunately, what often starts with the best of intentions can end in disaster, with instances or allegations of financial elder abuse and the breakdown of family relationships.
If you suspect that yourself or someone you know is being taken advantage of, it could be a sign of Elder Financial Abuse. Our experienced team of Wills and Estates lawyers can help. Contact our team today.
We have lawyers who specialise in a range of legal claims who travel to Australian Capital Territory. If you need a lawyer in Canberra or elsewhere in Australian Capital Territory, please call us on 1800 675 346.
We have lawyers who specialise in a range of legal claims who travel to Tasmania. If you need a lawyer in Hobart, Launceston or elsewhere in Tasmania, please call us on 1800 675 346.