2. Limited guarantee

With a limited guarantee, parents offer their property as part of the security for the children’s purchase, but the percentage is limited.

‘‘For example, a young person or couple might have a low 10 per cent deposit, which means they won’t benefit from the bank’s offer of a cashback and lower interest rate without a low equity premium margin.

‘‘If the parents can provide a limited guarantee against their own property for another 10 per cent, then the buyers will get these incentives and are likely to get around $12,000 extra over three years.

‘‘When we show this to parents, they invariably say it’s a no-brainer, because they haven’t actually had to find the money.’’

But again, the parents’ lawyer won’t like it.

‘‘Even if you are named on the documents, you don’t necessarily have visibility as to whether your children are making loan repayments on time,’’ says McNamara.

‘‘Again you are relying on the children’s goodwill. If the children are in default, the bank will knock on your door to call in your loan.