A helping hand gets feet on the property ladder
For many young people just starting out in life, saving the deposit needed to purchase their first home can seem like an insurmountable hurdle, even though they are completely confident they could afford the mortgage repayments once they get into their dream home.
This situation is not only difficult for those with home ownership aspirations, but often for parents who want to see their children settled and set up for the rest of their lives.
Through Beyond Bank’s parent equity option, parents can help their children take their first step on the home ownership ladder.
Parent equity allows borrowers to use the equity in their parent’s property to essentially act as a deposit for their first home.
For Lauren Rourke and her partner Cody Dodd, parent equity not only helped them purchase their first home, but enabled them to use their own savings to renovate and transform their new house.
“Saving a deposit can be hard,” Lauren said. “Cody and I were actually saving for a holiday when we found our new home. With the support of Cody’s parents, we were able to buy our first home together and still have enough funds to fix it up so we can enjoy living there and possibly even start our family.”
Judith Dodd explained that her sons had always dreamed of owning their own homes and buying while they were still young. Her eldest son bought his first house at 20 and Cody has now followed suit at 23.
“We are so happy we could help Lauren and Cody,” Judith said. “We really felt strongly about helping our children get into their first home. I highly recommend Beyond Bank’s Parent Equity Home Loan product to other parents who also want to help their children enter the property market. It was so easy to arrange thanks to Paula.”
Senior Relationship Advisor, Paula Pepper is based in Beyond Bank’s Kurri Kurri branch and assisted Lauren, Cody and the Dodds through the process.
“We tried some other financial institutions and brokers before finding Paula and she was amazing,” Lauren praised. “She even stayed back after hours to help us on the night of her birthday.”
Beyond Bank works with everyone involved in the Parent Equity Home Loan to ensure they understand their responsibilities and are comfortable moving forward.
Hunter based General Manager, Ray O’Brien explained, “Parents are sometimes concerned about their obligations under this product, but their liability is limited to the value of the ‘guarantee’ they provided and only in the case where their child is unable to pay the loan and the sale price of the property is less than the loan against it.
We can also work with buyers to get them income protection to reduce the risk of a first home buyer defaulting if they were to be out of work for any period of time.”
Find out more about how Beyond Bank can help you get into your first home.