Prior to this P2C solution, parents only had three ways to help children with a property purchase:

• Act as guarantor on child's loan - placing their own home and retirement savings at risk;

• Gift some money for deposit - but many lenders require evidence that the child had saved the deposit in their own right so this wasn't the answer; and

• Buy the house with the child as co-purchasers - which meant the children would not qualify for any First Home Owner Grants (FHOG) or stamp duty concessions.

P2C does not require parents to enter into any guarantee or place their property at risk. We can take care of all the paperwork, and parents determine the loan term and interest rate charged.

So Mum and Dad's house is not used as security for your P2C home loan, and the children can still qualify for the First Home Owner Grant and applicable stamp duty concessions (if eligible).

How does it work:-

• Parents determines dollar amount (either partial or full property purchase price)

• Parents determines term of loan (up to 25 years)

• Parents determines interest rate (min CPI + 0.5%)

• Parents can assist with 105% of purchase price

• Parents don't become guarantors or place their property at risk

• LaTrobe set up the legally-binding paperwork in one transaction to agreed terms

• Child still qualifies for the First Home Owners Grant (if applicable)

• LaTrobe pay monthly income to parent

• La Trobe loans money to child

• Loan is repaid in full

• Parents can waive/forgive or enforce the P2C loan at any time

Benefits to parents:-

• help their children without having onerous guarantees or risking their life savings;

• give children the purchasing power they need right now, protecting you and them;

• protect your wealth by formally documenting the assistance as a P2C loan, (not as a gift), so it is not exposed to potential marital or family breakdowns;

• obtain a secured investment in a registered investment Fund with over 14,000 other retail investors, paying monthly income;

• set the dollar amount (either partial or full property purchase price), set the loan term (up to 25 years), and set the initial rate of interest on the P2C monies;

• can advance up to 105% of the property purchase price to assist their children;

• will not expose your credit rating to any further grading as you are not the borrower;

• can subsequently waive/forgive or enforce the P2C loan (it's that flexible);

• can invest individually, via your company or family trust entities - parents will need to obtain independent legal, taxation and financial advice when doing so;

• have all the paperwork taken care of and have a registered mortgage interest;

• can co-invest with other families assisting their children in a combined P2C process;