Last week, I came across an article online about a CBA sales agent urging first home buyers to borrow against a parent’s house:
“Commonwealth Bank is encouraging struggling first home buyers to borrow 100 per cent of the value of a property using their parents’ home as security, describing the highly risky strategy as a “great option”. Here’s what I had to say about this…
CBA … even more despicable behavior? A ‘Family Guarantee’ product is just one option, it has potential implications for the guarantors and should only be utilized in certain circumstances! It should not be considered by the parents unless the kids have a very clear & achievable ‘exit strategy’ – for the extra 20-25% borrowing!
To be very blunt: CBA should not be encouraging first home buyers (and their parents) to go down this pathway AND the bank should be in more hot water over their claim!
Read the original article here: http://www.news.com.au/finance/real-estate/buying/this-is-a-great-option-commbank-agent-urges-first-homebuyer-to-borrow-against-parents-house/news-story/42b775bbadb9c938865d1ab1483ff560