The real estate market can be tough for young adults, but as a parent you may be able to lend a
helping hand. We tell you how.
A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding
arrangement, administered by an independent third party. At the start of the loan period, both
parties agree to terms including repayment amounts, a schedule and a process to manage
If your child doesn’t have enough security for a mortgage, you could provide a family guarantee.
This is where you use some of the equity in your own home as part of the security. For example,
your equity might cover 20% of the security, and your child’s new property would be the other
80%. It’s also known as a guarantor loan.
This can be a temporary arrangement until your child has paid down the loan to an acceptable