Thinking of opening the Bank of Mum and Dad?

Set yourself up for success.

Designed for parents to help their children on to the home ownership ladder, while protecting family assets and relationships.

Why it’s important to plan ahead

Opening the Bank of Mum and Dad is not without risk—both financially and emotionally.

That’s why we have created tools and checklists that help parents and their children educate themselves on the risks and implications that may arise when helping a child with a home deposit.

OVERVIEW
In this section we will guide you through the tips and traps:
Preserving family relationships
Gift versus loan?
How much can you afford?
What are your funding options?
How much can your child afford?
Document everything
  • Preserving family relationships
  • Gift versus loan?
  • How much can you afford?
  • What are your funding options?
  • How much can your child afford?
  • Document everything
Information about the Bank of Mum & Dad
Preserving family relationships

Work out in advance what happens to your agreement if their relationship breaks down. Also, consider the impact on other siblings.

Family structures and relationships can be emotional and complex at the best of times.

CLICK HERE to understand more about the steps you can take to protect relationships and your money
Gift or loan?

A gift is a simple transaction. However, unlike a loan, a gift may not be retrieved if the child's relationship breaks up.

With a loan, there is an understanding that the money will be paid back — sometimes with an expectation of interest, sometimes without.

CLICK HERE to understand the pros and cons of each approach and how you might structure the gift or loan
How much can you afford?

It’s great to help your children, but don’t risk your future dreams or finances, or your relationships.

Make sure that the relationship between you and your children is strong enough to weather any storms and that your financial capacity can withstand unforeseen circumstances without jeopardising your future plans.

CLICK HERE for our Risk Assessment questionnaire
What are the options to source the funds?

There are several ways to source the money needed to help your family: traditional bank loans, home equity loans like Inviva or becoming a guarantor.

How much can your child afford?

Your children may be the ones buying the house but you’ll always want them to make the right choices. Keep up to date with their planning and decisions and prompt them if needed.

Document everything

It’s essential to discuss AND fully document the arrangements between the borrower and the lender, to reduce the financial and legal impacts if things go wrong.

Remember, loans can last a long time and circumstances can change quickly.

CLICK HERE to find out more and get our free templates
How Inviva can help?
Take advantage of your home’s appreciating value
Release up to $2,000,000 from your home equity
No fixed term
No need to provide proof of income or job status
  • Take advantage of your home’s appreciating value
  • Release up to $2,000,000 from your home equity
  • No fixed term
  • No need to provide proof of income or job status
Want more information about Equity Empower?
Click Here

Further reading...

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Ready to get started?
Click Apply Now to see if Inviva can help you access the equity in your home. 

Or if you’d like to learn more about how Equity Empower can help your family, click Contact Us and we’ll be in touch soon.

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