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Eleventh largest unregulated bank in Australia

eleventh largest unregulated bank

Most first home buyers are turning to the eleventh largest unregulated bank for financial support when purchasing their residential property. Who is this unregulated lender you ask? The bank of Mum and Dad!

The bank of Mum and Dad have become a crucial factor in helping first home buyers enter the highly expensive market. Recent stats show that this bank is ahead of AMP Bank, HSBC and many community banks. With an estimated $16 billion worth of transactions with the bank of Mum and Dad, which continues to grow by the day.

Author, Martin North, states that more than 50% of first-time buyers required financial support from their parents, whether it be a gift or loan, or other related help. This is believed to be due to the accessible equity held by those owning property. This, however, is another reaffirms the inter-generational issues, such as the wealth gap, as well as the risks within the property market.

Read the article in full here!

Credit: Martin North

Source: www.digitalfinanceanalytics.com/

 

 

Credi’s #WhatTheLoan – To Help Fund a Small Business

Another week down, and here’s to another #WhatTheLoan! Recently we had a lender help out their close friend fund a small business.

Have you ever lent to a close family member or friend?

fund a small business

 

 

Lending or gifting is a major financial commitment – Credi can help you!

lending or gifting

Lending or gifting are some of the most common ways of parents helping their children buy their first property. YourMoney highlights a number of alternative options for UK parents to help their children buy a home and highlights the key risks involved.

There are many ways for parents to financially help their children afford their first property. The most common way for parents to help their children is lending or gifting them money. Formalising and documenting the agreement is often where issues arise. With SaaS software such as Credi, an informal loan between family and friends can be formalised, documented and managed all in one place. In turn, protecting relationships and avoiding arguments.

Author Patrick Fitzpatrick, mentions Royal London’s guide, that highlights other ways that parents can help their children buy a home. Including acting as a guarantor, taking out a joint mortgage, taking out a second mortgage or even equity release.

Another key aspect that Royal London suggests parents always take into account is the potential tax risks involved. Such as, when parents are named in their child’s deed for the property, making them liable for an additional 3% stamp duty on a second home.

Read more by clicking the link below

Credit: John Fitzsimons

Source: www.yourmoney.com/

 

 

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Formalising the bank of Mum and Dad with Credi – Kaplan feature

formalising the bank of mum and dad

Kaplan Professional is a leading Australian education and training provider in Financial and Real Estate Services. Kaplan’s recent article on formalising the bank of mum and dad highlights statistics on informal lending between friends and family. This article further highlights the solution to informal lending, being loan documentation and management through platforms such as Credi.

Their recent article on ‘the bank of mum and dad’ and relationship lending highlights various statistics on informal lending between friends and family. It further highlights a solution to informal lending, being loan documentation and management through platforms such as Credi.

‘The bank of mum and dad’, is one of Australia’s largest informal loan providers each month accumulating billions of dollars of transactions. However, for the financial services industry, it remains a largely under utilised resource.

A Commonwealth Bank study completed in 2012, highlighted that “Australians borrow more than $1.6 billion per month from their family and friends”.

A survey by ANZ bank in 2012 also revealed that 23.5% of Australian’s owed family and friends and a mere 5.1% had a personal loan from a bank.

While there are advantages to borrowing from our ‘nearest and dearest’, such as lower interest, the emotional effects can be significant. The informality of borrowing from friends and family can potentially negatively affect or ruin a relationship.

That’s where ‘software as a service’ or SaaS comes in. Platform’s such as Credi, have emerged worldwide in the hopes of helping people semi-formalise the lending and borrowing process. Not only do these platforms help protect relationships when lending money, they also aid in formalising and documenting the process, along with financial educate children on managing a loan.

Read the article in full here

Credit: Kaplan Professional

Source: ontrack.mykaplan.edu.au

 

 

Parents becoming key support for millennials struggling to enter the property market

parents support struggling millennial children

The bank of mum and dad are playing a key role in helping their struggling millennial children purchase their first homes writes CBC News.

A significant number of millennials in Canada plan to buy a home soon, however, they believe they are a long way from being financially ready to enter the market. HSBC commissioned  Kantar TNS to complete a global survey of 9,000 adults, in the homes of capturing home buying attitudes globally.

The result gathered showed that 1/3 Canadian Millennials currently own their own home and amongst the 2/3 that didn’t 82% stated they intend to buy within the next 5 years.

However, the most staggering statistics was that 73% of these individuals wanting to buy in the next 5 years hadn’t yet started saving for a down payment.

Numbers suggest that parents playing a key role in first home property purchases. With more than 1/3 of the sample group saying they have received financial support from the bank of mum and dad to pay for housing costs.

Credit: Pete Evans

Source: www.cbc.ca

 

 

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Fathers Day praise for the bank of Dad’s in Perth – Credi in The Sunday Times

The Sunday Times celebrated Perth Fathers on Sunday by chatting with Tim Dean and writing about the generosity and love for our dad’s in regards to the bank of Mum and Dad.

Tim Dean went on to share in with journalist Jenne Brammer that the idea behind Credi.com and how he was the head of his own branch of the bank of Mum and Dad. As a father himself he always gave to his kids when he could. However, when he lent money to his children issues occasionally arose, such as chasing up the repayments and the ‘moneychat’ (where he’d be asked for more money).

Then the innovative fintech platform was created. Credi.com helps family and friends alike make loans between one another, helping avoid the stress and strain on a relationship. The platform provides users with a toolkit to formalise (with a legal loan document) and manage the process from start to finish, all within one place.

If you missed the chance to read Tim’s feature in The Sunday Times, don’t you worry!

Read it in full below!

 

Credi - The Sunday Times Perth

Credit: Jenne Brammer

Source: The Sunday Times

 

Credi’s #WhatTheLoan – loan to help a friend with house renovations

We all lend money even though we’re told not to. Recently we had one generous Credi user help out a mate by lending them money for ‘house renovations’. #WhatTheLoan

What have you lent or borrowed money for?

house renovations

 

 

Is it really a bad idea lending to family and friends?

lending to family and friends

We’ve always been told never to lend money unless you’re willing to lose it, however, WeFinance’s Willy Chu writes of the positive aspects of lending to family and friends.

Within his article, Chu mentions the shift in attitudes in the US in regards to attitudes about transparency in regards to personal information such as finances and debt.

A recent study by Nielsen highlighted the increasing number of younger generations being more willing to lend to family and friends.

Read the article in full by clicking here!

Credit: Willy Chu

Source: www.quora.com

 

 

Seeking financial help for your business with bad credit

LeaseFunders infographic shows a great way to seek financial help for your business even when you have bad credit.

Poor credit can often hold you back and make it hard to get a loan. Getting help from family and friends isn’t always a bad idea. These kind of investments in a business and loans are becoming more frequent.

Family and friends are always there for you when it comes to a loan. If you show your willingness to do the right thing and repay the money you’re more likely to get the amount you need and receive further help in the future.

Check out the LeaseFunders infographic below

Credit: Lease Funders

Source: visual.ly

LeaseFunders infographic shows a great way to seek financial help for your business even when you have bad credit

 

 

Study finds more young adults are relying on the bank of Mum and Dad

relying on the bank of mum and dad

Global News Canada’s journalist, Jon Azpiri, writes of a new study highlighting that more young adults rely on the bank of mum and dad.

Many successful Canadian adults are feeling the financial strain in renting and buying a property. Sandro Sgaetti, a 29-year-old working full time as a construction worker and camera man lives at home with his my mom and dad. “It’s too much money paying rent and trying to find a house in this town is pretty much impossible,” he shares.

CIBC’s surprising statistics also show that many parents are rearranging their finances to help their adult children. With one in four Canadian parents saying they spend more than $500 a month to support their adult children.

Watch the video to find out more about the impact of the Bank of Mum and Dad.

Credit: Jon Azpiri

Source: globalnews.ca