The worst way to give your kids money, according to banks
What every parent considering gifting or lending cash to their kids for a home deposit must know.
Lucy DeanWealth reporter
Tim and Catherine are borrowing money from family to buy their first home. What they don’t realise is if Catherine’s parents loan them $100,000, it will cut their borrowing power from the banks by $270,000.
This is because the bank will factor in the loans from Catherine’s parents when assessing this hypothetical couple’s ability to repay.
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