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Mortgage featured stories

First home buyers turn to Bank of Nan and Pop

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Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

Most of us have special memories of pocketing a few treats from Granny and Gramps.

But it turns out those small gestures of affection we knew as kids are morphing into something far more valuable than a few sneaky lollies before dinner or a surprise Lego set.

Research by Compare the Market shows almost three-quarters of Aussie grandparents are giving their families a financial helping hand.

Around 13% are lending money, 9% are chipping in with household bills, and one-in-10 are helping their grandkids buy a first home.

It goes to show that we’re never too old for grandparents’ treats.

But if your Gramps and Granny are keen to help you get started in the property market, it’s important to have some open conversations first.

How grandparents can help

It’s not unusual for first home buyers to need support from family – especially in this day and age – and it can come in a variety of ways.

One option is for a close relative to act as a guarantor for a first home buyer’s loan.

It’s a big ask for grandparents though.

If the borrower can’t keep up the loan repayments, a lender can ask the guarantor to pay off the debt – something that could leave Nan and Pop financially skewered.

If they can afford it, another way for grandparents to help their grandkids buy a home is by gifting money.

What to be aware of

A cash gift doesn’t have to be huge to make a difference.

It can help grow a deposit or go towards upfront buying costs such as lenders’ mortgage insurance.

However, there are traps to be aware of.

You could get a ‘please explain’ from a lender when they see a lump sum of cash land in your bank account.

The bank may want to be sure it’s not a loan that grandma and grandpa expect to be repaid.

So, it can be a good idea for grandparents to write a letter spelling out that they are gifting the money unconditionally with no strings attached.

And while this should go without saying, it would be negligent of us not to stress the importance of nan and/or pop being completely sound of mind when gifting any money.

The last thing you’d want to do is leave them short in funding their retirement, or start a rift (or legal battle) with other family members who love and care for them as much as you.

Talk to us to find out how family can help

Buying a first home is a special milestone, and it’s extra special when family members rally around to lend a hand.

But as we’ve outlined today, it’s not without its potential pitfalls.

So call us today to find out the different ways your family might be able to help you buy a place of your own.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Is fear of rejection holding you back from your life goals?

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How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

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How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

How much could you expect to borrow for a home in 2024?

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How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

Mortgage featured stories

First home buyers turn to Bank of Nan and Pop

News
Share

Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

Most of us have special memories of pocketing a few treats from Granny and Gramps.

But it turns out those small gestures of affection we knew as kids are morphing into something far more valuable than a few sneaky lollies before dinner or a surprise Lego set.

Research by Compare the Market shows almost three-quarters of Aussie grandparents are giving their families a financial helping hand.

Around 13% are lending money, 9% are chipping in with household bills, and one-in-10 are helping their grandkids buy a first home.

It goes to show that we’re never too old for grandparents’ treats.

But if your Gramps and Granny are keen to help you get started in the property market, it’s important to have some open conversations first.

How grandparents can help

It’s not unusual for first home buyers to need support from family – especially in this day and age – and it can come in a variety of ways.

One option is for a close relative to act as a guarantor for a first home buyer’s loan.

It’s a big ask for grandparents though.

If the borrower can’t keep up the loan repayments, a lender can ask the guarantor to pay off the debt – something that could leave Nan and Pop financially skewered.

If they can afford it, another way for grandparents to help their grandkids buy a home is by gifting money.

What to be aware of

A cash gift doesn’t have to be huge to make a difference.

It can help grow a deposit or go towards upfront buying costs such as lenders’ mortgage insurance.

However, there are traps to be aware of.

You could get a ‘please explain’ from a lender when they see a lump sum of cash land in your bank account.

The bank may want to be sure it’s not a loan that grandma and grandpa expect to be repaid.

So, it can be a good idea for grandparents to write a letter spelling out that they are gifting the money unconditionally with no strings attached.

And while this should go without saying, it would be negligent of us not to stress the importance of nan and/or pop being completely sound of mind when gifting any money.

The last thing you’d want to do is leave them short in funding their retirement, or start a rift (or legal battle) with other family members who love and care for them as much as you.

Talk to us to find out how family can help

Buying a first home is a special milestone, and it’s extra special when family members rally around to lend a hand.

But as we’ve outlined today, it’s not without its potential pitfalls.

So call us today to find out the different ways your family might be able to help you buy a place of your own.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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Is fear of rejection holding you back from your life goals?

News
Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

Is fear of rejection holding you back from your life goals?

News
Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

Is fear of rejection holding you back from your life goals?

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Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

How much could you expect to borrow for a home in 2024?

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How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

How much could you expect to borrow for a home in 2024?

News
How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

How much could you expect to borrow for a home in 2024?

News
How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

Mortgage featured stories

First home buyers turn to Bank of Nan and Pop

News
Share

Nan and Pop have always been good for birthday money, but one-in-10 grandparents are taking their generosity to the next level: helping their grandkids buy a first home.

Most of us have special memories of pocketing a few treats from Granny and Gramps.

But it turns out those small gestures of affection we knew as kids are morphing into something far more valuable than a few sneaky lollies before dinner or a surprise Lego set.

Research by Compare the Market shows almost three-quarters of Aussie grandparents are giving their families a financial helping hand.

Around 13% are lending money, 9% are chipping in with household bills, and one-in-10 are helping their grandkids buy a first home.

It goes to show that we’re never too old for grandparents’ treats.

But if your Gramps and Granny are keen to help you get started in the property market, it’s important to have some open conversations first.

How grandparents can help

It’s not unusual for first home buyers to need support from family – especially in this day and age – and it can come in a variety of ways.

One option is for a close relative to act as a guarantor for a first home buyer’s loan.

It’s a big ask for grandparents though.

If the borrower can’t keep up the loan repayments, a lender can ask the guarantor to pay off the debt – something that could leave Nan and Pop financially skewered.

If they can afford it, another way for grandparents to help their grandkids buy a home is by gifting money.

What to be aware of

A cash gift doesn’t have to be huge to make a difference.

It can help grow a deposit or go towards upfront buying costs such as lenders’ mortgage insurance.

However, there are traps to be aware of.

You could get a ‘please explain’ from a lender when they see a lump sum of cash land in your bank account.

The bank may want to be sure it’s not a loan that grandma and grandpa expect to be repaid.

So, it can be a good idea for grandparents to write a letter spelling out that they are gifting the money unconditionally with no strings attached.

And while this should go without saying, it would be negligent of us not to stress the importance of nan and/or pop being completely sound of mind when gifting any money.

The last thing you’d want to do is leave them short in funding their retirement, or start a rift (or legal battle) with other family members who love and care for them as much as you.

Talk to us to find out how family can help

Buying a first home is a special milestone, and it’s extra special when family members rally around to lend a hand.

But as we’ve outlined today, it’s not without its potential pitfalls.

So call us today to find out the different ways your family might be able to help you buy a place of your own.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

More Stories

Is fear of rejection holding you back from your life goals?

News
Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

Is fear of rejection holding you back from your life goals?

News
Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

Is fear of rejection holding you back from your life goals?

News
Is fear of rejection holding you back from your life goals? Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.

How much could you expect to borrow for a home in 2024?

News
How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

How much could you expect to borrow for a home in 2024?

News
How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

How much could you expect to borrow for a home in 2024?

News
How much could you expect to borrow for a home in 2024? As property prices hit record highs across a number of cities, it’s no surprise that new home loan balances are also nudging towards fresh peaks. Today we’ll reveal what the ‘average’ new home loan is in your state, and provide you with some handy tips to help bring down your balance sooner.

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News
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News
50,000 low-deposit spots open for first home buyers and single parents The new financial year has kicked off with a bang for first home buyers! A whopping 45,000 more places have opened up for them under the Home Guarantee Scheme, as well as 5,000 more spots for single parents. Here’s how it could help you buy a home sooner.

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News
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News
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Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Will home prices keep rising over the next year?

News
Will home prices keep rising over the next year? Property prices are expected to keep climbing higher through to mid-2025 – though not everywhere, according to a new report. We reveal where prices are tipped to go up, and where prices are expected to fall.

Will home prices keep rising over the next year?

News
Will home prices keep rising over the next year? Property prices are expected to keep climbing higher through to mid-2025 – though not everywhere, according to a new report. We reveal where prices are tipped to go up, and where prices are expected to fall.

Will home prices keep rising over the next year?

News
Will home prices keep rising over the next year? Property prices are expected to keep climbing higher through to mid-2025 – though not everywhere, according to a new report. We reveal where prices are tipped to go up, and where prices are expected to fall.

Rate cuts? Pencil them in for 2025

News
Rate cuts? Pencil them in for 2025 Put the party pies on ice and postpone those rate-cut celebrations for a while yet. The much-touted rate cuts we’ve been waiting for may not arrive until 2025. Here’s why rates could be staying higher for longer, and how to take action yourself.

Rate cuts? Pencil them in for 2025

News
Rate cuts? Pencil them in for 2025 Put the party pies on ice and postpone those rate-cut celebrations for a while yet. The much-touted rate cuts we’ve been waiting for may not arrive until 2025. Here’s why rates could be staying higher for longer, and how to take action yourself.

Rate cuts? Pencil them in for 2025

News
Rate cuts? Pencil them in for 2025 Put the party pies on ice and postpone those rate-cut celebrations for a while yet. The much-touted rate cuts we’ve been waiting for may not arrive until 2025. Here’s why rates could be staying higher for longer, and how to take action yourself.

Is a tree or sea change on your horizon?

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Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

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Is a tree or sea change on your horizon? Fresh air, no bumper-to-bumper traffic and more affordable home prices. There’s plenty of appeal in regional living, including a chance to potentially reduce your home loan.

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Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

Why three-in-four Aussies turn to a broker for home loan help

News
Why three-in-four Aussies turn to a broker for home loan help You might have seen a headline or two about a particular big bank being at war with brokers. Nothing could be further from the truth. Our mission is – and always will be – putting you first. That’s why three in every four borrowers now come to us for help.

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What you should know before buying ‘subject to finance’ Not sure if you’ll get the thumbs up for a home loan? But you really, really like that house that just popped up? Making an offer ‘subject to finance’ could be the right move. Here’s how it works.

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Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.

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Not feeling the budget love? 4 ways you could still get ahead If the latest federal government budget is leaving you hungry for perks and savings, you’re not alone. We’ve had a brainstorm and here are four ways you could start working towards your property goals now.