Parents help their kids buy homes
An increasing number of parents are refinancing their home loans and providing cash for their children to use as deposits to buy their own homes. One in three young homebuyers gets help in this way with parents lending amounts from $1,000 up to $100,000 or more.
The Commonwealth Bank says the trend began in 2000 when the current property boom started. Aussie Home Loans says parents are playing a pivotal role to get their children started in real estate investment with prices now beyond the reach of most young people. Mortgage Choice says it's increasingly difficult for a young person to save for a deposit on a home. In Sydney, the average deposit is now about $25,000.