Can you assist your children with their home loan?

Gifting

The number of Australian households who are struggling to refinance due to serviceability issues has surged from 15% to 30% in just less than six months, according to Compare Club.

New data from the personal finance marketplace and advice company also showed a skyrocketing number of refinancing inquiries from mortgage holders with an LVR of 90%, which makes refinancing tough, if not impossible, and to a level not seen since interest rates began to rise.

– Broker News 23^rd August 2023

Are you in a position to assist your family when their home loan repayments are escalating and they cannot get a better interest rate? Do you want to make sure they can retain their home without financial stress or “forced sale”? Have you considered a reverse mortgage payment as a gift? An amount of $800 per month for 2 years should not affect any age pension entitlements.

Speak with Ray to find out more and how your personal situation may assist your family.

Some of our FAQs

Do I still retain the ownership of my home?

Yes, your name remains on title, like any other traditional mortgage. The lender is simply registered as having an interest like your conventional mortgage loan.

What is the acceptable age of the youngest borrower?

60 years, however, some lenders require the youngest borrower to be 70 years of age.

Are the borrowers protected under the National Consumer Credit Protection Act?

Yes, the law has been amended to include senior’s equity release loans under the National Consumer Credit Protection Act.

Read more at our main FAQs page

Can you assist your children with their home loan?

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