M Financial

Want to help your kids buy their first home, but unsure how?

Getting into the property market is tough right now, and many first-home buyers are leaning on their parents for a little help. But it’s not just about handing over cash - there are a couple of ways parents can step in, depending on their situation.

✅ Gifting Money (as Genuine Savings)
If you’re able to gift money towards their deposit, most lenders will require it to be classed as genuine savings. That means it usually needs to sit in their account for a period (often three months) to show they can manage money responsibly.

✅ Using Security (Property or Term Deposit)
If you own property or have cash reserves, you can offer part of that as security on their loan. This can help them buy with a smaller deposit and avoid costly Lenders Mortgage Insurance (LMI), potentially saving them thousands.

Both options come with their own risks and responsibilities, and offering your property or savings as security is a big financial commitment. Getting the structure right is crucial to make sure everyone is protected.

Helping your kids into the market can be life-changing for them, but it’s important to understand the finer details before jumping in. The right advice can make the process smoother (and safer) for everyone.

We're ready to help you and your kids navigate through this 🦁

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‘Weird’ detail let sellers keep family’s $320k A Victorian family who lost their entire $320,000 home deposit are now warning other aspiring property owners to look out for the legal “loophole” that left them penniless.