Your family could be the key to unlocking your new home
A new way of thinking can be your way into your first home
When it comes to major purchases like buying a car or understanding important documents, many of us rely on our parents or relatives for advice and support. The same applies to one of the biggest investments of all—purchasing a home.
In today’s market, turning to the “Bank of Mum and Dad” isn’t just a trend; it’s a savvy strategy that could fast-track your journey to homeownership.
Your family’s support might be the key to unlocking your new home, boosting your chances of success, and ensuring a solid investment in your future.
Understanding your options
They can offer you a gift
Parents can help their children with a house deposit by gifting money, which can significantly boost the deposit amount and potentially lower mortgage costs.
For transparency, it’s also important to provide signed evidence that the sum is not required to be paid back.
Your Mortgage Broker and Lender may require a Statutory Declaration indicating that the money is a gift and is non-repayable.
Family could provide a loan
A loan can help with the deposit or other expenses. Loans must be repaid, so have different legal implications than a gift.
It’s also worth formalising the loan agreement with clear guardrails, including how repayments will be made and when, to help protect you both.
We recommend that you seek independent professional advice to ensure this option is appropriate for you.
Parents could agree to become guarantor
Parents may be able to assist their children in buying a home by acting as a guarantor on their mortgage.
This means the parents provide additional security to the lender, which could help the child secure a loan with a smaller deposit or better terms.
Co-borrower
As co-borrowers, parents share the responsibility of the loan, which can improve your
chances of approval and potentially secure better terms.
However, co-borrowing means both parties are equally liable for the mortgage payments and are noted on the title, so it’s crucial to understand the risks involved.
They can buy the property
Your parents can buy the property for the purpose of renting it out to you. The negative is that you won’t own it, however you may be able to negotiate a cheaper rent to help save for your own deposit sooner.
Our trusted finance partner
Our finance partner Resolve Finance makes securing the right home loan simple, guiding you every step of the way. Their commitment extends beyond just home loans— offering a complete range of financial services.
This information does not consider your personal needs and financial circumstances and you should consider whether it is appropriate for you. We recommend seeking assistance from a qualified professional to help determine the right option for your financial situation. All financial solutions provided by Resolve Financial Solutions Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN 65 079 545 378, Australian Credit Licence No. 385487.
Learn more about the pathways
Get in for only a $10k^ deposit.
Managing your home and finances can be challenging, whether you’re a seasoned saver or just starting. Resolve Finance, our partnered specialist, is here to help.
$15k** incentive for titled land
Buying titled land streamlines homeownership by enabling faster construction, as the land is ready for building.
You may find that a townhouse is a great value option
A townhouse offers an affordable, low-maintenance path to homeownership, often in vibrant communities near schools, shops, and transport. With access to amenities like parks and town centers, it’s ideal for first-home buyers balancing lifestyle and budget.