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For many families, the biggest lending conversations we’re having right now aren’t about refinancing or rate movements, they’re about the next generation. Adult children are trying to enter a challenging property market, often with strong incomes but limited d.....
Lending - 9 min read
For many families, the biggest lending conversations we’re having right now aren’t about refinancing or rate movements, they’re about the next generation.
Adult children are trying to enter a challenging property market, often with strong incomes but limited deposits. Parents want to help, but are understandably cautious about risk, fairness and long-term implications.
When done well, next-generation lending can be a powerful way to support children, strengthen family wealth and create long-term financial confidence.
When done poorly, it can create unintended pressure - financially and emotionally.
The difference comes down to structure, strategy and timing.
We’re seeing a perfect storm of factors driving these conversations:
For many younger clients, lending is their first meaningful financial decision and often their first interaction with a professional adviser.
That first experience matters.
Every family is different, but the most common approaches we see include:
Often used to help a child enter the market sooner, without needing a full deposit.
Key considerations:
This is an area where structure really matters.
Programs such as the 5% deposit scheme have created opportunities for first home buyers but they still require careful assessment.
It’s not just about eligibility. It’s about ensuring the loan structure works as incomes grow and circumstances change.
Whether it’s gifted funds or a documented family loan, clarity upfront is critical.
We always encourage families to think through:
The biggest risks we see don’t come from the intention to help, they come from moving too quickly.
Common pitfalls include:
These issues are rarely obvious at the outset, which is why early advice is so important.
At Altus, we don’t view next-generation lending as a one-off event.
We see it as:
When lending is considered alongside tax, wealth and business advice, families can make decisions that feel supportive - not stressful.
Often, the most valuable outcomes come simply from having the right people in the room early.
We recently worked with a business-owning client who initially came to us under cash flow pressure. After restructuring their business lending and improving their position, the conversation naturally shifted to their family.
Their adult child was ready to buy a first home but unsure where to start. By structuring the lending carefully and using a government scheme appropriately, we were able to support the purchase while keeping the parents’ position secure.
What began as a business lending review became a multi-generational solution built on trust, clarity and good structure.
Next-generation lending will continue to be one of the most important area of advice in the years ahead.
Handled well, it:
Handled poorly, it can create unnecessary complexity.
If you or your family are starting to think about how best to support the next generation - the earlier the conversation begins, the better the outcome tends to be.
Set your business on the right path with this simple guide.
Make sure you’re on the right track with this online checklist.
Lending - 7 min read
Lending - 6 min read
Lending - 7 min read
© 2022 Altus Financial, All rights reserved.
Altus Wealth Pty Limited ABN 55 649 956 212 is an Authorised Representative of Altus Financial Services Pty Ltd ABN 24 637 026 825 an Australian Financial Services Licensee (AFSL no. 520266). Altus Financial Services Pty Ltd is not responsible for the advice, products and services provided by Altus Accounting. Julie Azzi is a credit representative (CR No. 366834) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence 391237).
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