I question whether a bank who lends money for a profit should also be advising people how to put themselves into debt, even for family members. There are so many things that can go wrong even if it’s because of love of children or relatives.
By all means encourage the idea of assisting family members to get housed, but the advice should be from independent advisers, and not from the source that will be doing the lending.
I have seen countless examples where people have provided cash, credit or guarantees to friends and family, only to find themselves dispossessed of their homes and investments through no fault of their own.
Banks are wonderful friends most of the time, but they have big teeth and they will use them if and when the need arises
Seminars open doors to bank of Mum and Dad
Tuesday Apr 8, 2014
Anne Gibson NZ Herald
Many parents were now helping their children buy homes, particularly in Auckland and Christchurch. Photo / Thinkstock
Mortgage loan restrictions are making the “bank of Mum and Dad” so popular that one bank is running seminars on the best way for people to structure the deals.
New Zealand’s biggest home lender, ANZ, is running “Leaving the Nest” information evenings, beginning in Remuera tomorrow then moving to the North Shore.
ANZ’s Auckland retail and business banking general manager, Andrew Webster, said the seminars aimed to help parents give their offspring the 20 per cent deposit that many needed because of Reserve Bank restrictions on loan-to-value ratios.