The Bank of Mum and Dad: Examining the Opportunities and Potential Pitfalls

How does parental assistance impact the affordability and
accessibility of housing for first-time buyers? Do alternative
financing options offered by parents create an imbalance in the
housing market? As the fifth biggest lender in Australia, the
bank of mum and dad has become a viable option for financing,
particularly for first home buyers.


We take a closer look at this option with the guidance of our
expert guest, Jenny Fagg — CEO and co-founder of 2Be. Jenny, who
we are honoured to be here with today, provides valuable insights
into the various financing options available to first home buyers
and offers a balanced perspective on the potential advantages and
considerations of parental assistance.


Understand the complexities behind how parental support can
influence your home-buying journey as we delve into its effects
on affordability and accessibility. We explore the ways in which
financial help from parents can help overcome rising property
prices and stringent lending criteria. At the same time, we
discuss the potential implications of alternative financing
options, such as an imbalance in the housing market.


If you're a first home buyer eager to understand how your parents
can help you achieve your homeownership dreams, this episode is a
must-listen. Gain a comprehensive understanding of how parental
support can influence your home-buying journey and explore the
potential benefits and challenges associated with it.


Episode Highlights:


00:00 - Welcome


02:47 - What is 2Be?


04:18 - Is it only the really wealthy who can get help from the
bank of mum and dad?


06:35 - Borrowing against investment properties


10:45 - Explaining a reverse mortgage and the repayment options
for the bank of mum and dad


14:54 - Paying back the parents – what are the terms?


20:04 - The opportunity cost of not getting into the market
earlier


24:44 - Six tips for understanding the risks of parents lending
to their children


36:43 - What if something unforeseen happens to the parents and
they have to sell?


42:54 - Maximum proportion of the value that Jenny would offer
access to out of the program


45:21 - What Jenny wishes she knew as a first home buyer


About Jenny Fagg:


Jenny Fagg is one of the founders of 2Be Finance Pty Ltd, a
financing company that offers home equity loans for over 55s.
Prior to this, Jenny served as CEO and Managing Director of ANZ
National Bank Limited. She holds a PhD in Management (Risk) and a
Bachelor of Economics (First Class Honours in Organisational
Psychology).


Connect with Jenny Fagg:


Follow Jenny on LinkedIn:
https://www.linkedin.com/in/jenny-fagg-74521951

Visit their website: https://www.2be.com.au/



Resources mentioned in this episode:


Make the best bank of mum and dad decision:
https://www.2be.com.au/education-documents

Setting up the Bank of Mum and Dad to Success:
https://www.2be.com.au/bank-of-mum-dad/setting-up-the-bank-of-mum-and-dad-for-success

Financial Firepower Calculator
https://www.2be.com.au/calculators/financial-firepower-form



Resources:



FREE TRAINING: How to make an educated
decision so you buy your first home with the right amount of
debt https://homebuyeracademy.com.au/webinar

Visit our website https://www.homebuyeracademy.com.au/

Learn how to buy property without making a mistake with our
10-step online course for first time home buyers
https://homebuyeracademy.com.au/YFHBG

If you have any questions or would like to be featured on our
show, contact us at: Your First Home Buyer Guide Podcast
support@homebuyeracademy.com.au

Looking for a Sydney Buyers Agent?
https://www.gooddeeds.com.au

Work with Veronica: https://www.veronicamorgan.com.au

Looking for a Brisbane Buyers Agent?
https://www.propertypursuit.com.au/

Work with Meighan: https://www.linkedin.com/in/meighanwells/



If you enjoyed today’s podcast, don’t forget to subscribe, rate,
and share the show! There’s more to come, so we hope to have you
along with us on this journey!


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