CASE STUDY: Document Everything

Say buy to your kids, with confidence. Take the time to document and agree all aspects of the arrangement in advance.

Meet John and Jenny.

Older couple relaxed on a boat
Reading time: 5 min

Bank of Mum and Dad: Document Everything

John and Jenny, both 65, worked hard all their lives to give their kids, Adam and Kelly, the best education and to have enough money for a great retirement without worry.

They own their home in Mosman, have a great investment property in Redfern they bought years ago, a strong share portfolio and a self-managed superfund.

They adore both partners. Kelly has two kids, and Adam is just married and will have one on the way soon—they hope.

We helped Kelly into a house a few years ago now, they are right around the corner from us, so we get to see the grandkids a lot. It’s a great arrangement, we want the same for Adam.


It’s now time for John and Jenny to help Adam with a house deposit. It’s been 6 years and prices have nearly doubled! They want Adam and his family close, but soon realised the deposit amount was going to be much more than they had budgeted for.

After much research and financial advice, John and Jenny went with an Equity Empower loan. “It’s a flexible equity release loan that accesses the money tied up in our own home. I am confident that house price increases will more than cover the principal and interest rate charges. In five years, we had planned to sell the investment property so we can pay it back easily”.

Adam also offered to re-mortgage when his financial position is more secure. Whatever the case it will be a win-win for all the family.

What did John and Jenny do differently this time?

Inviva provided great home equity calculators, checklists and templates. This, combined with good financial advice, made John and Jenny confident in the choices they made this time round.

The Inviva education guides made us realise how exposed we were in lending money to Kelly without any documents in place. Lucky for us nothing went wrong with Kelly or her relationship, or our deposit money may never have been returned.


Sketch of loan documents

This time, in helping Adam, our priorities were:

Understanding all our finance options and weighing up the risks.
Having loan agreements with both children, so in case of break-ups or tragedies, we get our deposit back.
Any differences in money provided to Adam or Kelly would be “made good” on our deaths before dividing the estate.
Wills in place for everyone in the family.
Sketch of loan documents
The calculators, checklists and templates from Inviva education were so helpful, we saved ourselves a lot of time and money!

    - John

Now that's living the life.


Both kids are well set up in a way they could never be without our help. And they live close by! Our Equity Empower loan and all the family loan documents are secured. We can now get on and enjoy our retirement without worry or fear of loss if anything went wrong.

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