Bank of Mum and Dad: why a written agreement can make sense

With more first home buyers relying on family support to get into the market, we explain why it may be beneficial to put the details in writing if Mum and Dad offer a financial helping hand. 

Higher home prices are seeing more first homebuyers turn to family members for help buying a place of their own.

That support can come in a variety of forms, including living at home rent-free to help grow a deposit, or having parents act as guarantor for a first home loan.

But it can also go one step further.

An estimated 60% of first homebuyers have dipped into the ‘Bank of Mum and Dad’ – receiving financial assistance from parents – to get started in the market.

The amounts handed over aren’t small, averaging more than $30,000 according to one study.

With that sort of money changing hands, it can be worth having a written agreement in place.

As many as 64% of first homebuyers who rely on the support of parents have no paperwork at all for the arrangement, which can make things complicated with lenders.

Let’s take a look at why it’s worth considering putting the details in writing.

The Bank of Mum and Dad can help fast-track homebuying plans

In general, parents provide funds to their first-home-buying children as a loan, a gift or an early inheritance.

For first homebuyers, this injection of cash can cut the time taken to save a deposit, or push a deposit up to 20% – the amount usually required to avoid lenders mortgage insurance if you’re not relying on any federal government or lender schemes.

A bigger deposit may also have the upside of giving buyers access to lower interest rates.

How do lenders treat funding from Mum and Dad?

If you’re expecting Mum and Dad – or other close relatives – to offer cash towards buying a first home, it’s likely your lender will ask whether the money is a gift or a loan.

This distinction matters because if the money is a loan, the bank may take the repayments to parents into account when considering your ability to service a home loan.

This could even impact your borrowing power.

That said, research shows nearly half (49%) of parents who provide financial assistance to their children do not expect to be repaid.

More than a quarter (26%) offer the money as a gift.

Even so, having these details set out in writing before applying for a home loan can answer a lender’s questions about funding sourced from Mum and Dad, and help prevent delays in your loan application.

A new reason to have a written agreement

New anti-money laundering laws in place from 1 July 2026 mean that real estate agents are now required to verify the identity of home buyers, and in some cases, ask about where the funds used to buy a home came from.

Here too, it can be handy to have a written document that describes the nature of support from parents.

What documentation is required?

It depends on the type of arrangement.

If the money is a gift, a statutory declaration signed by your local Justice of the Peace (JP) confirming there’s no repayment expected is usually enough.

For anything more, such as the money being a loan or your parents acting as guarantor, you’ll want to seek legal advice from your solicitor.

A few tips for first homebuyers to bear in mind

The financial assistance of family members can give first homebuyers a valuable leg-up with a deposit.

But your deposit is just one part of the picture.

Lenders usually want to see that you’ve been regularly setting money aside in savings – usually for at least three to six months.

This evidence of  ‘genuine savings’ shows you have the discipline to manage a home loan.  

Also, your personal income still does a lot of the heavy lifting in determining if you’re eligible for a home loan.

After all, family members may provide a generous helping hand to get you started, but you need to be able to live comfortably with your loan over the long term.

Talk to us if you’re thinking of using the Bank of Mum and Dad to buy your first home. We can let you know what lenders like to see when applying for a home loan, and guide you through the rest of the process.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

New financial year, new reasons to review your home loan

As the calendar flips over to July, now’s a good time to give your home loan a once-over. We look at five strategies that could help you save on interest and pay off your mortgage sooner.

With three rate hikes already this year, and a big variation in rates between lenders, it’s worth checking you’re not paying too much interest on your mortgage this new financial year.

The hard part can be knowing how or what to weigh up. Here are 5 things to consider.

1. Review your loan rate

Not sure about the rate you’re paying? You’re not alone.

Over one-in-two home loan borrowers are in the dark about their mortgage rate.

Not knowing this number can be an expensive oversight.

So, grab a copy of your latest loan statement or jump onto your banking app. You’ll usually find your current rate under your account details.

As a guide to how your rate shapes up, the average variable rate now is about 6.45%.  

The thing is, there are still some lenders offering home loan rates that start with a ‘5’ or a low ‘6’.

If you’re not happy with the interest rate you’re paying, call us to find out how much you could save by refinancing.

2. Check your loan has the features you need

Loans can come with a variety of features that may help you save on interest, and pay down your mortgage sooner.

However, having access to these features may mean paying a slightly higher interest rate.

If you’re not making use of them all, switching to a lower rate ‘basic’ loan could see you save.

3. Add up the fees you’re paying

While it’s natural to focus on your interest rate, it’s also worth keeping an eye on home loan fees. They can really add up over time.

Around 14% of loans still charge monthly fees, and where they apply, these fees can be as much as $15 a month.

Talk to us if you’re being slugged with a monthly fee. It’s an additional cost you may be able to avoid by moving to a different loan.

4. How does your loan shape up for flexibility?

Home loan flexibility is all about how well your mortgage can adapt to changes in your circumstances or lifestyle.

This can include being able to make extra repayments, and enjoying fee-free redraw if you need to draw the money back out for unexpected bills.

Is your loan flexible enough to be split between a variable rate (to benefit from any rate falls) and a fixed rate (for repayment certainty)?

Or, is your loan portable? This may give you the flexibility to transfer your mortgage from your old home to a new place if you move, letting you avoid the cost of setting up a new loan.

5. Is your lender still showing you love?

Great service doesn’t just mean a quick call to check that everything is going smoothly with your home loan.

It’s also about rewarding your loyalty as a home loan customer. And that doesn’t always happen.

According to Canstar, an owner-occupier who took out a loan five years ago and hasn’t renegotiated since, is likely to be paying a rate of 6.98%. 

Yet many lenders are offering variable rates below or just about 6.0%.

Despite the potential for savings, more than half (52%) of Austrslian home loan borrowers have never changed lenders.

If that sounds like you, call us to see if you’re paying a home loan loyalty tax simply by sticking with the same lender.

Head into the new financial year confident about your home loan  

A home loan review shouldn’t take too much time out of your schedule.

Contact us today about a home loan health check. It could help you hit the new financial year running.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How the property market is shaping up in your area post budget night

It’s just over a month since the Federal Government unveiled its tax reforms on budget night. Here’s how property values are responding across the major cities.

The proposed changes to negative gearing and capital gains tax came as a big shock for property investors around the country – both current and prospective. 

Despite the understandable concern and frustration that followed, more than a month after the budget night announcement, home values remain fairly steady – with the recent pause in interest rate hikes offering some relief.

In fact, four state/territory capitals recorded price gains in May.

But what we are seeing is some markets where price growth is slowing, and sellers may be more willing to negotiate. That’s potentially good news for home buyers.

With this in mind, let’s see how the market is faring in your neck of the woods.

No sign (yet) of a major downturn across multiple markets     

The latest data from PropTrack shows how markets moved in May, which covers the immediate post-budget period (the budget was handed down on 12 May).

Home values in both Sydney (median value of $1.238 million) and Melbourne ($846,000) dipped by 0.2% for the month.

Values in Perth (median $1.024 million) cooled by 0.1%, while Canberra ($869,000) saw values dip 0.4%, the largest drop across the major cities.

However, plenty of state capitals saw values continue to climb.

Adelaide (median $950,000) and Darwin ($622,000) topped the leaderboard of gains, with both cities seeing a 0.3% rise in home prices for the month.

Home values rose 0.2% in Hobart (median $735,000). Further north, in the Olympic city of Brisbane (median $1.08 million), prices climbed 0.1%.

Regional markets outshone the big cities, with home values up 0.2% in May. Regional South Australia (up 0.7%) and regional Tassie (up 0.5%) notched up stronger gains.

Price growth is cooling off the back of strong gains

It’s clear that, as PropTrack puts it, any price falls have been “modest”.

And they follow an extended period of exceptional growth – 7.5% nationally over the past year, and 37.7% over the last five years.

So it’s important to put the current market conditions in perspective.

Why serious price falls are unlikely

Research group Cotality is not expecting a “sharp” correction. And there are several reasons why they believe significant price falls are unlikely:

1. Home buyers, not investors, make up the majority of buyers

Some investors may, quite sensibly, have been waiting to see how the proposed budget tax reforms would pan out before they became law (it turns out they’ll pass the Senate with support from the Greens).

However, it’s worth remembering that home buyers outnumber investors, and owner occupiers are not impacted by the proposed tax reforms.

2. Our population is growing

Australia’s population grew by 1.5% last year.

That means an additional 412,500 people, who all need somewhere to live.

This population growth will continue to drive demand for homes.

3. Australia faces a serious shortage of homes

We simply aren’t building enough homes to meet demand.   

The Housing Industry Association (HIA) estimates that in 2025 Australia needed to build more than 250,000 homes just to keep pace with demand.

Instead, construction started on just 196,000 homes.

The shortfall in new homes isn’t a quick-fix issue.

The HIA believes demand for homes is likely to exceed supply until at least 2030.

Opportunity for home buyers

Despite these factors, there is some softening occurring. 

Cotality says today’s conditions are starting to favour buyers in some markets.

This could be your opportunity to buy in a more relaxed market.

Talk to us to calculate your borrowing power and for help finding a home loan that helps you achieve your property goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Record smashed: over 80% of buyers turn to a broker for help

The mortgage broking industry has notched up an exciting record with the news that brokers now account for 81% of Australia’s residential lending market. Here’s why.

For some time now, mortgage brokers have been tantalisingly close to clearing the 80% market share benchmark, and we’ve finally smashed our own previous record.

We’re thrilled to announce that brokers facilitated a record high of 81% of new home loans in the first quarter of 2026. 

That’s up from 77% last year, and a big leap from 55% back in 2018.

Those are findings of the industry body, the Mortgage and Finance Association of Australia, which says brokers settled $124.88 billion in new home loans in the first quarter of 2026 – the highest volume recorded for any January to March quarter.

It’s quite a milestone, and the benefits all flow your way.

Let’s take a look at why more Australians are turning to a broker for help understanding lending options, comparing products and landing a loan that can turn property goals into reality.

What do mortgage brokers do?

Taking out a home loan is a serious step, and you want to be confident of getting it right.

With over 130 home loan lenders to select from, it’s easy to assume home buyers are spoilt for choice.

The catch is that it takes would-be buyers time – and lots of it – to compare just a fraction of the loans available.

That’s where brokers come in.

Our job is to help you navigate the complexity, and assist you in finding a mortgage that meets your needs.

We start by explaining your borrowing power, letting you know if you’re eligible for any first home buyer support schemes, giving you access to a huge range of lenders, and then doing all the legwork comparing rates and features to short-list a suitable selection of home loans for you.

Then we help you complete the loan paperwork, and we liaise with your chosen lender all the way through to settlement.

All-in-all, this gives you a great combination of confidence and convenience when it comes to organising your home loan.

Why do over 8-in-10 borrowers choose a mortgage broker?

The continued growth of brokers’ market share comes at a time when borrowers are facing housing affordability challenges, cost of living pressures and changing interest rate expectations.

That’s a lot to manage on your own.

Add in more complex lending decisions, and it’s easy to see why more Australians than ever before are turning to a mortgage broker.

Be rewarded with customer satisfaction

Brokers don’t just help streamline the home loan process. We can also make it more rewarding.

Research by Deloitte has found broker customers tend to be more satisfied with their experience than direct-to-lender customers.

One-third of broker customers rated their experience of using a broker a 9- or 10-out-of-10 (with 10 ‘exceeding expectations’), compared to only 20% of direct-to-lender customers.

And, as brokers are required by law to act in your best interests, you can be sure we will only recommend loans and lenders that suit your circumstances.  

Put us to the test

No matter whether you’re a first home buyer, upgrader, investor, or you just want to know if you could benefit by refinancing to a new loan, we’re here to help.

Call us today to discover why more Australians are choosing to partner with a broker.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 tips to help you clear your mortgage by retirement

Worried you’ll still be paying off your mortgage in retirement? New research shows you’re not alone. Here are five tips to help clear the slate before you hang up your work boots.

A new trend is emerging that could leave retired home owners with less money to spend than they expected.

A recent study found at least one-in-three Gen X homeowners expect to be paying off a home loan in retirement.

Gen Xers aren’t alone.

Separate research shows one-in-three Millennials and one-in-four Baby Boomers expect to carry mortgage debt into retirement.

Why does this matter? And is it possible to pay off a mortgage by the time retirement rolls around?

Let’s take a closer look.

Why more Australians have a home loan in retirement

There are several reasons why a growing number of Aussies are retiring with a mortgage.

We are tending to buy a first home later in life.

And homebuyers are borrowing more due to rising house prices.

This has seen the 30 year loan term become pretty standard, up from 25 years in the past.

The upshot is that buying a first home at say, age 35 could mean still paying down a mortgage at age 65, which is close to the average age of retirement.

Below are five simple steps that could help you clear the home loan slate and free up some extra cash for your golden years.

1. Partner with a broker

As mortgage brokers, we’re committed to long-term relationships with our customers.

Our annual home loan reviews play a critical role, ensuring you continue to have the loan that matches your needs throughout your home ownership journey.

This is a key starting point to getting on top of your mortgage balance over time.

2. Don’t see your home loan as a ‘one and done’ product  

From your first home loan to your last repayment, life is sure to change.

The loan that was right for you as a first home buyer may not be such a good fit as you progress through life stages.

That makes it worth talking to us regularly to know if you are still getting value from your loan.

Refinancing to a new loan and lender can ensure you enjoy a competitive loan rate, which can help you pay the balance off sooner.

3. Aim to consistently pay a little extra where possible

Consistently paying a little extra off your home loan can reduce your balance, lower future interest charges and fast-track the time taken to pay down your loan.

Even small extra payments made consistently can shave years off your mortgage.

Talk to us to know how much you could save with extra repayments.

4. Consider a home loan offset

An offset account is an everyday account linked to your home loan.

The balance of the account is deducted from your mortgage when it comes to calculating your loan interest payments.

For instance, if you have a mortgage of $500,000 and a balance of $50,000 in the linked offset account, loan interest will be charged on $450,000.

In this way, an offset account can help to lower interest costs over time.

It can make an offset home loan a smart way to put savings to work by paying off your mortgage sooner, while still having spare cash available at-call.

5. Switch up your repayment frequency

The timing of your home loan repayments can make a difference.

Rather than making one monthly payment, it can help to make smaller payments more frequently – either fortnightly or even weekly.  

This sees daily loan interest calculated on a lower amount, which can see more of each repayment whittle away at the loan balance.  

Paying more frequently can also help you make extra repayments.

For example, when you pay half your monthly repayment every two weeks, you can end up making the equivalent of an extra month’s repayment each year.

Call us to know how much you could save with this strategy.

Talk to us to know more

Whether you’re years or decades away from booking in an over-60s cruise or doing the “big lap”, contact us today for more insights on how you can clear the home loan slate before you hang up your work boots.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.