Bank of Mum and Dad
Act as the Bank of Mum and Dad
The bank of mum and dad is among Australia’s biggest lenders. According to an article, it accounts for at least $29 billion in funding for kids.
An ASAG Reverse Mortgage gives parents and grandparents the ability to act as the Bank of Mum and Dad (or BOMD) to their family when they need it most. We find customers wanting to assist their family financially, whether to pay for educational expenses, first home buyer’s deposit, or a mortgage.
An ASAG Reverse Mortgage allows them to do this without accessing immediate savings and superannuation. It can assist by avoiding depletion of other retirement pillars and affecting long-term retirement funding.
Use ASAG Reverse Mortgage to be the Bank of Mum and Dad
Before giving the kids money through the Bank of Mum and Dad, be clear whether it’s a loan or a gift. As a loan, it may have an impact on your pension entitlements. It’s important to discuss any financial change with Centrelink in advance to avoid any disruption. Centrelink can be contacted on 132 300.
Intergenerational transfer of wealth should be done in a responsible manner. It is also recommended before committing to any financial decision to discuss your options with a financial planner or advisor to find the best solution for you and your family. However, if you have already done this and your retirement funding is already allocated, you can use ASAG Reverse Mortgage to contribute to your kids’ financial needs.
Contact us on 1300 002 724 to see how using a reverse mortgage could be part of your retirement planning safely and in control.