Bev Lacey

"Bank of Mum and Dad" now being targeted by big banks

DID mummy and daddy buy you that house?

Maybe not, but they probably helped.

And if you live in a major city, then there may have been no other choice.

Welcome to the new normal of Australia's housing market where even the nation's biggest lenders are conceding that yes, the so-called "Bank of Mum & Dad" is the only way that many will ever be able to own their own home.

FROM THE ARCHIVES

The understanding that established home-owners were now helping to finance or going guarantor for their children's homes has been widely understood but now it has been confirmed.

Banks are now seeing the Bank of Mum & Dad as a chance for opportunity.

Sydney Morning Herald reports banks are now even offering specific home loans that put parents at lower risk if their children default on a loan.

NAB figures suggest 8% of first home buyers taking out a loan for a first home are supported by family.

Westpac too has confirmed that its "guarantee product" aimed at those going guarantor has gone up 9% at St George, which is a larger increase than its usual loan growth across the entire bank.

The median house price in Sydney earlier this year was $995,804. In Melbourne it's closer to $600,000.



OPINION: Be careful what you wish for in Barnaby case

OPINION: Be careful what you wish for in Barnaby case

Strict rules could end up backfiring on us in the long run.

Plea to put community first

Plea to put community first

'Why doesn't the council encourage business and employment?'

Qld weather: Little reprieve as flood warnings put in place

Qld weather: Little reprieve as flood warnings put in place

Brisbane weather: Queensland storms to bring ‘month’s worth of rain

Local Partners