The Market Reality

Avg Deposit Gap

~$100k

20% plus costs in metro areas

Bank of Mum & Dad

60%+

Of first home buyer market

Wealth Transfer

$3.5T

Projected over next 20 years

Risk Factor

High

For un-structured gifts

Strategy Simulator

Compare the two most common assistance methods. Toggle between Cash Gift and Security Guarantee to see how they impact the parents' retirement planning and asset protection.

Financial Impact (Parents)

Risk Exposure

The "Hidden" Risks

⏳

Retirement Lock

The Trap: Security guarantees "lock" equity.

Parents may be unable to downsize or access reverse mortgages for aged care until the child refinances.

💔

Relationship Breakdown

The Trap: Cash gifts are often unprotected.

In a divorce, 50% of the parents' gift could walk away with the ex-partner. Formal loans prevent this.

⚓

The Clawback

The Trap: "All Monies" clauses.

Parents could become liable for the child's credit cards or personal loans, not just the mortgage.

Broker Action Plan

✓ Recommend clients formalize intra-family loans via a solicitor.
✓ Select "Limited Guarantee" products to cap parental liability.
✓ Discuss the "Exit Strategy" (refinance date) before signing.

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