Highlights of Family Gifts or Guarantor Loans

There are several ways that your family members – your parents, typically – can help you towards home ownership. In fact, according to the National Australia Bank (NAB), more adults are using these methods nowadays. In the 2015 financial year, the NAB noted that most of the first home buyers were aged 20 to 29 (73%) and aged 30 to 39 (21%). There are even some in their teens and, on the other end of the spectrum, in their 40s.

The NAB Family Guarantee allows you to buy your first home with your family member as a guarantor, using their home equity as the security for your loan. Lender's Mortgage Insurance may not be needed anymore, which can help make things more affordable for you. You can also select from the various NAB-branded products to find a home loan that suits your situation best.

There are other family guarantor loans that will allow you to borrow 100% of the value of house and land packages in Perth – and sometimes even more than that. Some of these products won’t require you to pay a deposit, and others will allow you to consolidate other debts (such as credit card balances) with it.

If your parents don’t want to put their assets on the line, they can give you a lump sum gift or an advanced inheritance, such as their superannuation benefits. These gifts remove the risk for your parents and can spare you from expensive taxes.

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