Bank of mum and dad becomes ATM for hard-pressed families

The bank of mum and dad is shifting from helping loved ones enter the property market to assisting with living expenses amid the cost of living crisis, according to a survey by UBS. Financial aid from parents is now commonly used for cash payments, mortgage interest, and home purchases. Generous transfers exceeding $200,000 reflect the high property prices and diminishing affordability, with contributions from grandparents comprising 14% of financial transfers. To avoid disputes, experts advise documenting agreements, clarifying gift versus loan, reviewing wills, and discussing “what-if” scenarios when borrowing from family members.

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