CBA launches parent guarantor loan
The Commonwealth Bank has launched a new loan package which allows parents, grandparents and siblings to guarantee home loans for family members. In tandem with the launch, the bank released a Newspoll survey it had commissioned showing nearly 90 per cent of parents would help their children to buy their own homes. The guarantee arrangement would see a family member put asset security towards a loan, assist with mortgage repayments or both. St George introduced a similar guarantee option last month. Infochoice warns that anyone wishing to go guarantor on a home loan should seek independent legal advice to ensure they are fully aware of their obligations and financial exposure. The Newspoll survey found that around 50 per cent of children would accept their parents' financial assistance to buy property but the other half would prefer to go it alone. Just over half of the young home buyers surveyed said they are foregoing holidays, expensive clothes and restaurants to save for a home. Others said they are living with their parents while they save, working longer hours and putting off having a family.