To The Rescue
McKinley Plowman finance partner Paul Moran speaks with the Sunday Times’ Home Magazine about how parents and family members are helping their children get into the housing market through parent guarantee loans. High housing prices and strict lending criteria present big challenges for first home buyers trying to enter the market. Paul explains how guarantor loans work, how they help first home buyers to avoid expensive mortgage insurance and the broad range of issues parents and their adult children need to be aware of before signing up for one of these financing facilities. Paul points out how these loans, which can involve either offering the parent’s home as security for a full guarantee for an entire loan or a limited guarantee for a portion of the loan, can restrict the future lending capacity of the guarantor.
Reproduced with the permission of Sunday Times.
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