Feedback from readers has revealed keen interest in ways of reducing the risks involved in helping children achieve home ownership.
So crucial is parental support for potential first home buyers that financial institutions are even suggesting funding options to assist home buyers avoid paying costly mortgage insurance attached to purchases with high Loan Valuation Ratios (LVRs).
The highest risk option for parents is to act as guarantor for the child’s loan. If things go wrong the lenders can pursue the guarantor for all of the outstanding debt. Calling on the guarantors when problems arise is common practice.
To avoi…
Read the full article at: http://www.smh.com.au/money/planning/reducing-the-risk-of-helping-adult-children-into-property-20170302-gupjwe.html
