KY Accountancy

16/10/2026

Want to help your kids buy property? Here’s how.

The real estate market can be tough for young adults, but as a parent you may be able to lend a helping hand. We tell you how.

1.Parent-to-child loan

A parent-to-child loan is when a parent lends their child money. This is a formal, legally binding arrangement, administered by an independent third party. At the start of the loan period, both parties agree to terms including repayment amounts, a schedule and a process to manage defaults.

Benefits: You can set generous terms for your child, but your assets, savings and credit rating are somewhat protected as you are not the borrower.

Drawbacks: There are legal implications for your child if they have a spouse and the relationship breaks down, in that the spouse could try to claim some of the loan proceeds as an asset of the relationship to which they are entitled. There are also tax considerations for both parties.

2.Family guarantee

If your child doesn’t have enough security for a mortgage, you could provide a family guarantee. This is where you use some of the equity in your own home as part of the security. For example, your equity might cover 20% of the security, and your child’s new property would be the other 80%. It’s also known as a guarantor loan.

This can be a temporary arrangement until your child has paid down the loan to an acceptable level.

Benefits: You have the option of guaranteeing only a portion of the loan.

Drawbacks: If your child defaults, your assets are at risk.

3.Becoming a co-applicant

You can help your child secure a loan if you sign on as a co-applicant. This means you’re equally as responsible as your child for meeting repayments. The lender will consider your assets in its borrower’s assessment.

Benefits: Your child can obtain a loan with a low income.

Drawbacks: If your child stops making repayments, you’re responsible for making them. If you can’t make the repayments, it will affect your credit rating.

4.Gift

When you give your child money but don’t expect it to be repaid, it’s considered a gift. You may need to sign a statement to say it’s a gift, not a loan.

Benefits: You can provide financial help, possibly without the legal, tax or financial implications of a formal arrangement.

Drawbacks: If your child has a spouse and their relationship breaks down, the former partner could make a claim for the property.

5.Assistance in kind

If you’re risk averse, consider providing assistance in kind; that is, covering some of the expenses that come along with buying a property. You could pay for services such as a property survey or conveyancing fees, or help with stamp duty.

Benefits: You can give practical financial assistance.

Drawbacks: The amount of money you provide may be more than what your child ends up spending. For example, you might want to contribute $20,000 but the services cost $15,000. In this case, the rest of the amount is subject to the terms of a gift or loan.

Make sure you’re well informed about your options when giving or lending money so you can remain in the best position to help your child become a home owner. You can contact your mortgage broker to discuss the right financial arrangement for your family.

16/10/2026

We are all in the gutter, but some of us are looking at the stars. Oscar Wilde

16/10/2026

Go inside Orica's ammonium nitrate plant, described as 'chalk and cheese' from Beirut Top business news for you selected by KY

Orica's ammonium nitrate stockpile is just 800 metres from homes and within four kilometres of Newcastle's C*D, but the comparison with Beirut is "chalk and cheese", according to its general manager.

15/10/2026

Do borrowers still trust mortgage brokers?

By Gerv Tacadena

As DIY home loan services gain popularity amongst Australian home buyers, it is important to ask whether the services provided by mortgage brokers still have a place in the process.

As it turns out, the level of satisfaction with mortgage brokers remains high, a recent study commissioned by the Finance Brokers Association of Australia (FBAA) found out.

In a poll of over 2000 home loan clients, the study found out that 94% were happy with their brokers' expertise, knowledge, and competency.

Around the same number said they were content with how their brokers understood their needs, targets, and financial situation.

It is also interesting to note that clients recognize how their brokers uphold their own interest, resulting in an overall contentment towards the strength of the broker-client relationship.

Commenting on the results of the study, FBAA executive director Peter White said the poll showed the overall positive confidence of clients to brokers.

"While these results are good they are not perfect. There is always room to improve but when we see the issues in the royal commission we know the broker industry is best in breed, and the objections raised by the productivity commissioner are simply not based in fact or competent research," he said.
This study paints a different picture than an earlier research released in March, which found that customers who obtained home loans in person at a bank branch reported greater satisfaction than those who went through a mortgage broker.

15/10/2026

A loving heart is the truest wisdom. Charles Dickens

15/10/2026

Half the staff at NSW mine to be axed as industry reacts to plummeting coal price Top business news for you selected by KY

Peabody Energy announces plans to halve the workforce at the Wambo Underground Mine, in NSW, as it moves to drastically scale back coal production.

14/10/2026

How much can you afford to borrow with your first home loan?

Understanding how much borrowing capacity you have when buying your first home is an essential step for all newcomers to home ownership.

The question of “How much can I borrow?” rears its ugly head for all new home buyers. As daunting as it can be, understanding your borrowing power is important – and essential – for those ready to get their foot in the door with their first home purchase.

Owning property in Australia is a dream for many young professionals and families. Aside from the financial benefits of owning a home, being able to call a slice of land your own is one of life’s most coveted accomplishments.

Financial factors

Before you start looking for a property – either to live in or as an investment – take a look at your finances from all angles and ask yourself a few important questions:

Do I have enough money to pay for a deposit?
Can I afford to make monthly repayments?
Is my repayment/credit history positive?
Have I assessed my household budget?
Am I planning to start a family soon?
Understanding where you stand financially and what financial loads may be coming your way in the near future can give you a clearer picture of how large or small your borrowing capacity should realistically be.

Figures that figure

How much you can comfortably afford to borrow comes down to two factors:

The size of your deposit. Most lenders require a minimum of 10 per cent of the total property cost.
How much you can afford in mortgage repayments.
If you’re currently renting a property, your weekly or monthly rental amount is a good indication of the starting figure for your mortgage repayments. This is the bare minimum, however. You will need to add other expenditures to this figure, such as rates, taxes, lenders mortgage insurance (if applicable), among others.

New buyers may also want to consider single or joint income amounts. As a general rule, your mortgage repayments (along with other short and long-term expenses) shouldn’t cost more than 35 per cent of your gross income.

Help wanted!

Many people choose the help of a mortgage broker when shopping around for their first home loan, and for good reason. Using a mortgage broker to seal the deal can give you greater choice, peace of mind and clarity, especially for those just starting out in the property market.

Mortgage brokers have a wealth of knowledge to steer you in the right direction in terms of what you can realistically afford versus what you think you can afford.

There are many home loan calculators that can also help buyers get a sense of their borrowing capacity. These online calculators factor in your loan type, loan length and interest rates to calculate a general repayment figure. Your broker will be able to walk you through these calculations to ensure you’re aiming for the right figures.

Doing your due diligence from the very start will pay big dividends when it comes to home ownership in Australia. Putting your expenses under the microscope may be intimidating at first, but it will ensure your home loan works as hard for you as you did for it.

Speak to a broker today to seek out more information on home loan borrowing.

14/10/2026

Difficult roads often lead to beautiful destinations.

14/10/2026

China's anti-dumping probe could add to the woes of Australia's w**emakers Top business news for you selected by KY

Winemakers still recovering from bushfires, and battling the impact of coronavirus on sales, are nervous about the impact China's investigation into Australian w**e imports will have on the local industry.

13/10/2026

Mortgage refinances fall even further despite first rate drop of 2018

For the first time this year, mortgage rates dropped, but not enough to spur refinances — which took a sharp dive.
Total mortgage application volume fell 1.1 percent last week from the previous week, according to the Mortgage Bankers Association.
Refinances were behind the fall entirely. Volume fell 5 percent for the week and was nearly 19 percent lower than a year ago.

For the first time this year, mortgage rates dropped, but not enough to spur refinances — which took a sharp dive.

Total mortgage application volume fell 1.1 percent last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted report. Volume was 5 percent lower than one year ago.

Refinances were behind the fall entirely. Volume fell 5 percent for the week and was nearly 19 percent lower than a year ago, when mortgage rates were lower. Interest rates began to rise at the start of 2018 and did not let up until last week, but today's borrowers are so used to record-low rates that any move higher takes away the benefit from a refinance.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.68 percent from 4.69 percent, with points increasing to 0.46 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio loans.

"Treasury rates declined slightly on average last week, as a mixed bag of economic news and geopolitical concerns made investors more cautious overall," said Joel Kan, an MBA economist. "A significant driver of the decline was retail sales data showing less than expected spending by U.S. households for the third month."

The refinance share of mortgage applications fell to just 38.5 percent, the lowest since September 2008.

Mortgage applications to purchase a home increased 1 percent for the week and were 6 percent higher than a year ago. Purchase volume is less reactive to weekly interest rate moves and more dictated by a very tight and increasingly expensive spring market. The supply of homes for sale is at a critical low, and there is no sign of improvement yet.

"Although realtor.com data shows 422,000 homes hit the market in February, it's not enough to satiate demand from buyers, particularly in the under $200,000 price tier," said Danielle Hale, chief economist at realtor.com.

Affordability is weakening across the nation due to the combination of short supply, high demand and rising interest rates. And the respite for interest rates was short lived. They began rising again this week in advance of the Federal Reserve's expected rate hike Wednesday.

While the bond markets already expect the Fed's move, the announcement is one of only four per year when members update their outlook.

"This has become the market's way to stay up to speed on a general rate hike outlook," said Matthew Graham, chief operating officer at Mortgage News Daily. "The catch is that there's no way to know how much of a change the market currently expects. The takeaway is that rates stand a higher chance to experience a bigger move, for better or worse."

- Diana Olick from CNBC