Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Lender launches ‘family loan’ without family risk

Notify me of new replies via email
Australian Broker | 26 Sep 2012, 08:00 AM Agree 0
A mortgage manager is launching a patent-pending family loan, which it tells Australian Broker Online comes at a ‘crucial time’ for the industry
  • Phil | 26 Sep 2012, 09:45 AM Agree 0
    Sounds interesting, but you have to wonder who comes up with family assisting without either going on title or being liable if something goes wrong? Doesn't that premise fail the fairnest test applied to all loans? ie that everone contributing to a loan gets a benefit? It's low on detail... in fact there is no detail, so we wait to see.... and patents can take ages.... so I'll continue to do what I've always done in the meantime. Traditional limited guarantees.
  • Pat | 26 Sep 2012, 10:13 AM Agree 0
    It certainly sounds interesting. To Phils comment - family assistance is happening every day without being on the title or being liable if anything goes wrong. Its called a gifted deposit. If this product provides certainty around this piece - its a great thing
  • Pat | 26 Sep 2012, 10:19 AM Agree 0
    To Phils point, family assisting without being on the title or being liable if something goes wrong - is happening every day. Its called a gifted deposit. If this product provides structure & clarity around this for the parent I think its going to really fill a gap in the market. Looking forward to seeing the detail.
  • ozboy | 26 Sep 2012, 10:35 AM Agree 0
    Wonder if it is NCCP compliant if the parents are helping serviceability. Now it's out in the open ASIC will no doubt be door knocking shortly.
  • Paul Gollan | 26 Sep 2012, 10:39 AM Agree 0
    It's always been an interesting debate this one and parents may see fhe simple act of helping their children into a home as the 'benefit'
Post a reply