I have purchased an investment property and am renting it to my son and his family however I would eventually like to sell the property to him and his wife but as he is self employed and has four young children he would find it difficult to obtain finance. I am thinking of taking money out of my superannuation giving it to him to assist with a substantial deposit to assist in gaining finance. Do you think this would be worth considering?

Hi Archie,

There are alternative options available for self employed people that may suit your sons situation.

First step would be to speak with a finance broker to determine eligibility and borrowing capacity within the options available. Most will offer this service free of charge as the bank will pay them a commision for a succesful application and its not added to the rate. In most cases you will get a better deal than going direct to the bank.

I would only access your super as a last resort and you would need to seek independent advice on this.

Hope this helps.

There are alternative options for self employed!

To find out the options that are available, speak with a Broker to get more information.

I am happy to assist you son with getting more information on what his options would be!

Hi Archie,

As Damian and Colin have stated there are options plenty of options for self employed and I agree that accessing your own super to help your son should not be taken lightly. It all comes down to how much your property would cost for them to buy and how much of their household income remains to service a loan after expenses.

An alternative way you may consider helping them is by providing a family guarantee to help them avoid Lenders Mortgage Insurance (LMI) if they would be borrowing at a loan to value (LVR) ratio over 80%. This means that some of your equity (in your own home or term deposit) would be held as security for the 20% differential, however your son would still be responsible for all the repayments.

Feel free to get in touch if I can be of further assistance.