What is Multi-Generational Home Loan?
A multi-generational home loan allows family members from different generations to pool their financial resources and apply for a home loan together.
This approach can help families secure homeownership even when one member does not meet traditional lending requirements alone. It is particularly useful for families where income sources vary, or deposit constraints exist.
Case Study
Rebecca was in her late twenties when divorce led her and her young son Oliver to move in with Rebecca’s mother.
Once the divorce settlement was finalised, Rebecca decided to buy a house where she, her mother, Denise, and her son Oliver could live. Determined to turn a bad situation into a good investment, Rebecca used the divorce settlement for a deposit on a new home.
Although Rebecca’s mum was in her early sixties, her stable income meant she could manage repayments, and Rebecca would continue to work part-time while Oliver was young. When he gets older, Rebecca expects to work full-time, taking over the repayments as Denise prepares for retirement and has more time to care for her grandson.
Care should be taken to consider the borrowing capacity and tax implications should one of the owners move out of the home.
Important Information
Walbrook Wealth Management is a trading name of Barbacane Advisors Pty Ltd (ABN 32 626 694 139; AFSL No. 512465). Barbacane Advisors Pty Ltd is authorised to provide financial services and advice. Walbrook Wealth Management (Credit Representative Number 534783) is authorised under Australian Credit Licence 389328. We have based this communication on information from sources believed to be reliable at the time of its preparation. Despite our best efforts, no guarantee can be given that all information is accurate, reliable and complete. Any opinions expressed in this email are subject to change without notice, and we are not under any obligation to notify you with changes or updates to these opinions. To the extent permitted by law, we accept no liability for any loss or damage as a result of any reliance on this information.
