Parents giving more help to buyers

A new survey has revealed a lift in parents going guarantor for their children’s home loans.The survey, by Mortgage Choice, found 4.9 per cent of first home buyers had a parent or immediate family member go guarantor on their home loan.This was up from 3.9 per cent in 2015.Mortgage Choice CEO John Flavell said it wasn’t surprising when you took into account how high property prices had risen in some capital cities.He said by having a family member go guarantor some borrowers were able to avoid paying Lenders Mortgage Insurance which could be a hefty bill.“As property price growth continues to outpace wage growth, it is becoming harder and harder for first time buyers to save the deposit they need in order to purchase property,’’ Mr Flavell said.First time buyers in New South Wales and Western Australia were most likely to have a family member go guarantor for their loan.