Many moons again, in another life I worked for the CBA.
Back then, guarantors tended to get into trouble when they were guaranteeing business loans and loans for purposes other than a PPOR. They didn’t understand the business nor were they involved in the day-to-day running of it.
I would think that most people would do whatever they could to retain their PPOR. It’s not something you let go of easily.
I’d feel comfortable to go guarantor for my kids to purchase a PPOR but not for a business or personal loan.
Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
We have recently gifted 10% deposit to our 21 yo son as the 3 bed duplex next to his rental came onto the market. He has to take out mortgage protection insurance to satisfy the Bank with his 90% loan but the property is only 5km from Perth CBD in amongst brand new top class homes and we felt it was too good for him to miss out on. We know his current rental will either come onto the market in the future or he will be able to go joint venture as his landlords were very upset that they didn’t know the property was for sale. We don’t expect to be repaid and are only too glad to have the means to help and know that our son is very appreciative.
If I knew then what I know now……….you know how it goes
Hi,
My parents offered to gift us the deposit for our first home but realistically we wouldn’t have been able to pay them back until we sold it and we weren’t comfortable with that idea. Then they came to us with the plan for them to buy it as an IP and sell it to us at the same price in a few years when the equity gave us enough to not need a deposit. It took 2 years for the house to have built up enough equity for us to loan without mortgage lenders insurance. The house was originally purchased for $130K.
I think if parents can do this kind of thing for their children then great. However in saying that it should never be expected from children to be able to have that financial assistance from parents. Unfortunately not all have the resources to offer it.
Hopefully we can all achieve the success we need to be able to do this!
Rachel.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
