• Let them live at home: If rent is the main issue, you can help your child by inviting them back home and let them live with you rent-free for a couple of years until they manage to save a significant amount of money for a deposit.

  • Gift the deposit: If you have sufficient funds and can afford to pay for the down payment - why not gift the deposit to them? If your child has a full 20% deposit they can avoid paying Lender’s Mortgage Insurance. However, bear in mind that some financial institutions will need a “gift letter” to explain where the money came from.

  • Lend them the money: If you can’t afford to give them the deposit, you can lend them the money instead. Make sure that you put the loan in writing and include details like how you will be repaid and other conditions like the deadline.

  • Buy the house and let your child rent it: Another strategy is to invest in a property and let your child live in it as your tenants. This can be a great option to increase your asset portfolio, and also gives your child a place to stay until they have completely paid off the mortgage by paying rent to you. There are tax and legal implications involved so make sure to consult with your accountant and other experts before using this strategy. 

Many parents want to help their child financially by helping them buy their first home. Before you decide on a way to help your child with this, be sure to get advice from qualified experts. This way you can avoid any unexpected fall out.