What Can Go Wrong When Borrowing from the Bank of Mum & Dad? (with Barry Frakes)

Did you know that the “bank of mum and dad” is now the 9th
largest lender in the country?


With this option front and center, it’s incredibly important to
know how the whole process works and what kind of agreements
first home buyers can enter into.


We’re joined by Barry Frakes of Australian
Family Lawyers as we uncover what needs to be discussed when it
comes to borrowing from the bank of mum and dad, from setting up
a good agreement, preventing family frictions in case something
goes wrong, and what to do if it does happen.


If you enjoy the show, do like, rate, subscribe, and share it
with others! We have loads of resources available and if you’d
like to chat, email us at support@homebuyeracademy.com.au!


We’ll see you on the inside!


 


Episode Highlights:
What is “the bank of mum & dad” and what are the options?
[02:52] Veronica’s personal “ bank of mum &
dad” story [04:12] What to do before borrowing
from the bank of mum & dad [06:12] Preventing
family frictions when borrowing from your parents
[11:39] Would your parents be the first mortgagee
if they’re listed as a lender? [14:50] You need a
great mortgage broker to help communicate with the bank
[18:18] Unclear terms of agreement cause family
fallouts [22:39] Form an exit strategy at the very
beginning of the agreement [28:01] What about
going the co-ownership route? [32:04] The risks of
following the wrong advice [35:33] Prenuptials are
a good idea, but it’s not absolutely essential
[40:31] How do you even begin to talk about
borrowing from mum & dad? [43:22] What does
Barry know now that he wishes he knew at the start?
[45:24]

 


Link/s from the Show:


Australian Family Lawyers’ legal services 



 


About Barry:


Barry Frakes leads Australian Family Lawyers’
international strategy, leveraging his relationships and global
experience to drive their growth as a premier family law firm for
international family law matters and Heads our Asset Protect
Division. His international focus includes the management of
relationships with partner firms internationally including Stowe
Family Law in the UK. Barry is also the Governor (Asia Pacific
Chapter) of the International Academy of Family Lawyers.


 


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