The main options to help family get into the property market are:
- Guarantor home loans;
- Gifted deposits from family; or
- Soft loans (or informal loans) from family.
Guarantor home loans: There are different types of guarantor home loans but the usual type is where family members offer property as security for the loan when there is insufficient deposit.
Gifted deposits: This is basically where the family member will give money as a gift to be used as the home loan deposit.
Soft loans: This is similar to a gifted deposit but the money is returned to the family member when possible.