PHOTO: 123RF – The rise in parents lending to their adult children is attributed to rising house prices.
The majority of Australian first home buyers now borrow from the so-called “Bank of Mum and Dad”, which accounts for more than A$20 billion (NZ$21.3b) in property loans after shooting 25 per cent higher in the past year.
The shift toward family lending has sped up in the wake of immense pressure on the traditional banking sector, which has been forced to lift rates and minimum deposit requirements as it scrambles to adhere to new regulations and expected future tightening.
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