Should We Help The Kids Buy a House?

There has been much talk lately of adult children turning to the ‘bank of mum and dad’ to help bolster their house deposit savings and enable them to finance their first home. On 1 October, the Reserve Bank regulated high loan-to-value ratio (LVR) lending by requiring home buyers to come up with at least a 20% deposit. This is frustrating for would-be first home buyers who have found that the requirements to buy have changed. It has also been concerning to hear speculation that many young adults will simply ask their parents to help them get across the new threshold.
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