Bank of Mum and Dad: how to help your children buy a home

buy a home

Love Money sets out some great points as a guide for parents to financially support their children and help them buy a home. The Bank of Mum and Dad is ever growing and becoming a world wide phenomenon in relationship lending, now funding over a quarter of all home purchases. BOMAD is constantly helping their children get a foot in the property market and buy a home. However, for many parents, this may not be a feasible option. That’s why Love Money sets out this helpful guide, to help you find the best way to help your children without putting yourself in financial strain. Love Money looks into aspects of helping with a mortgage deposit, gifting money, lending money, guarantor & joint mortgages, and offsetting savings.

Credit: Love Money Staff



A great way to make sure secure the money that you lend to your children and friends is to make sure it’s documented and managed. Credi’s platform helps formalise and manage your loans and takes the worry out of lending large sums of money., a vital piece of fintech, is one of the fastest growing lending platforms in Australia. We’re an online platform that helps all you millennials and the ‘Bank of mum and dad’ (BOMAD), set up a loan online, document the details, create a repayment schedule, and formalise everything with an agreement and E-signing component. Our fintech platform has already helped hundreds of Australian businesses, friends and families formalise their loans and then manage them – protecting their relationships, avoiding disagreements.



Sacrifices millennials would make to own a home Cartoon

This awesome graphic highlights the sacrifices millennials would make to own a home. If you were a first-time buyer, what would you give up to own a home?

Sacrifices Millennials would make in order to own a home

Source: HSBC




Wealth gap rises as home ownership falls

Wealth Gap Rises

The Resolution Foundation completed research into the wealth gap in Britain, establishing that half the nation’s wealth belongs to one tenth of adults as property market and ownership declines. This decline, in turn, plays a key role in the return of the rising wealth inequality across the nation.

Credit: Michael Savage




BOMAD helps a third of second-steppers

BOMAD and second steppers

Research by Lloyd Bank has shown that nearly one-third of home overs that are looking to move up in the property market are seeking financial help from BOMAD. Banks estimated that on average they need £21,231 extra to take the step to their future property.

Credit: Hannah Nemeth




Relationship Lending from BOMAD Cartoon

What’s not to love about a hilarious cartoon on relationship lending from the Bank of Mum and Dad.  Who can relate? Our parents will always be there to help and are an ever growing source of financial support, just look at the Bank of Mum and Dad idea.

Relationship lending and BOMAD



The Bank of Mum and Dad….. Um, yes please!

Bank of Mum and Dad

BOMAD – It’s a crazy idea having a Bank of Mum and Dad isn’t it? But in today’s day and age, has it become essential for the those swimming in debt from university. The question I’m trying to figure out is whether it’s a bad idea overall for us Gen X and Y’s who seek independence and spending freedom to use or even come to rely on the ‘Bank of Mum and Dad’.

The rebooted Bank and Mum and Dad got its origins in an age old lending practice. I remember being told that my grandparents used a loan from their parents to buy a restaurant in Northbridge in 1948. Even though it was an established practice back in those days it didn’t have a name – it was just what you did – get help from family, not the banks. During the early 2000s banks took over and easy credit was available. That’s changed too. Today people are increasingly turning away from the banks and relying once again on friends and family for financial support. Many of my friends are perfect examples getting support from the Bank of Mum and Dad while studying and getting on their feet.

There are significant benefits of borrowing and lending from the Bank of Mum and Dad. Many of which (or the most important to me) surround the idea of not drowning in debt.

Mortgages, credit cards, registrations, repayments, deductions, HECS and fees are some of the expenses that drain our bank accounts daily. I feel like the expenses of a Gen X and Y within today’s society are constantly growing, ultimately making myself and most of my fellow youth hate the big banks and businesses. Everything has a cost, and the lure of a small monthly direct debit sounds great, but they add up fast, and then your finances are squeezed and these monthly payments out of your bank account just keep on coming.

The idea of the BOMAD also becomes a sound idea when you consider the removal of the negative features that are attached to a bank loan or credit card. The most important one that constantly rings on my mind is the idea of interest and how much a company can make off us. From the Bank of Mum and Dad interest is hardly ever an issue and if it is there at all. It certainly isn’t ever nearly as steep as a bank loan. Another consideration is that there’s no damage to your credit rating if you are late or can’t repay for a couple of months, which let’s face it, could be detrimental in the future when you need to take on a mortgage or can’t go to the BOMAD.

However, as we look closely at the appeal of the positives of using the BOMAD, we can’t help but establish the dangers and negative aspects when borrowing from family.

For me borrowing money from my parents can turn sour very quickly. When an argument arises, bringing up a past loan and using it against me is an automatic response.

In my parent’s eye borrowing money from them also gives them the right to complain about my spending habits and that may ultimately influence them when I’ve asked for help.

Along with arguments and bitter endings when borrowing from parents comes the issue of repayments. I’ve never had the steadiest of incomes and money coming into my accounts always fluctuates. So for me skipping repayments or saying I’ll give it back soon plays from my mouth like a record on repeat. In my mind, I always hope that there’s an off chance they’ll let me off paying it back. That maybe if I don’t mention it, they’ll forget about it or even let me off. But nope, let’s not get too excited, that barely ever happens and just makes them mad that I’m not paying it back.

Besides all these relationship dramas when borrowing from the Bank of Mum and Dad, we also risk putting our parents in an undesirable financial situation. Along with all the bills and payments our parents have to pay, further expenses surrounding health tend to arise as they grow older – because let’s face it, we can’t all be young and healthy forever.

When I made the discovery of, things became a little clearer. Let’s start with their motto, “A company empowering the bank of mum and dad”, this got me searching straight away! is a platform that allows people to formalise their loans and then manage them – protecting their relationships, avoiding disagreements. Our platform provides users with transparency, flexibility and formality to informal agreements. The best thing being we don’t touch your money, we just help facilitate the process of a loan between family and friends. Not only can you navigate the system fairly easily, pretty much formulates everything for you – just add the details.

After this discovery I felt like the BOMAD wasn’t such a bad idea. Not only does it feel comforting to be able to get financial support from people we trust and love, but it can also be done in a way that can be managed like a formal loan and not impede on a relationship. Next time I need financial support from my parents, I’ll have the peace of mind knowing everything will be safe and secure through

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