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The 2Be Parents and Children Calculator helps first home buyers and their parents determine what funds are required and what help is needed to propel the children into the housing market now.
Helping first home buyers into the market sooner
20 September 2022
•
4 minute read
With wage growth stagnating and the cost of living continuing to rise, it's becoming increasingly difficult for young people to save enough money to buy a home on their own. In 2021 Digital Finance Analytics estimated that 60% of parents are contributing to a deposit for their kids.
With just a few clicks the 2Be Parents and Children’s calculator provides clarity on what’s needed. Whether you are working with a parent who wants to help their child but isn’t sure how much they need; or working with a child looking to understand how much help they need from their parents–this is the calculator to use!
• For the child, the calculator estimates:
- The total amount needed to buy, including government grant eligibility
- How long it will take to save that amount without help
- The cost of waiting to buy a home versus the benefits of parents’ help
• For the parents, the calculator estimates:
- The amount of help that children need to buy now
- The amount of equity the children will have available from which to repay their parents in 5 years
In addition, this powerful calculator allows you to create different scenarios to be created that best suit both the parents’ and child’s needs and circumstances.
In many cases, 2Be Equity Advantage could provide parents with a safe and affordable solution to unlock equity to help their children or grandchildren.
2Be Equity Advantage is a new, 5-year home equity loan direct to the parents, which allows families to structure their arrangements in a way that works for both present and future scenarios.
Using the calculator families can estimate the number of years it will take for the child to pay the parents back—demonstrating that an Equity Advantage loan could be a win-win solution for the total family balance sheet.
Equity Advantage product features, in brief:
- 5-year fixed term loan
- Maximum loan amount of $500k
- Fixed or variable rate options
- Option to pay interest or deferral all payments to the end
Eligibility criteria:
- Youngest borrower must be between 55 – and 75 years young
- Own a property with a minimum value of around $1m, with little or no debt against it
- At least $500,000 of other significant net assets
- Clean credit history
- Australian Citizen or permanent resident. We also accept NZ citizens with a Special Category Visa
The 2Be website includes our Financial Firepower calculator, which provides a free property valuation and estimates the amount of equity that can be released from the parents' home.
The money can also be used for other purposes like home renovations, holidays, cars, or medical emergencies. It takes less than 60 seconds to find out!
2Be offers a referral program for experienced accountants and advisers. If you’re interested in referring potential clients to 2Be you can find out more at 2Be Professionals or email 2Be at
2Be Finance Pty Ltd Australian Credit Licence 533319.
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Helping Australians between the ages of 55 and 75 to use the equity in their home to help their children—and...
