Now well into my 40s and with a much larger home and mortgage, my parents are still giving me a financial boost to help me own my family home quicker. Like many Baby Boomers, they’re flush with cash thanks to years of hard work, large superannuation balances and the minimum pension payment rules. Forced to withdraw about 6 per cent of their superannuation each year, my father recently “complained” that he had too much cash and low-interest rates left him at a loss at what to do with it.
Knowing that my parents would always be willing to help me reduce my mortgage, I suggested they park their money in my offset account. Offset facilities were unheard of when they were paying off their mortgage so the idea had never occurred to them. After receiving a quick lesson in the benefits of an offset account, my parents transferred a significant sum of money to my account where it has sat for over two years. They’ve even added more money to nudge me further down the path of homeownership.
Thanks to my parent’s pension, the interest bill on my mortgage last month was just $14.94. Now almost every cent of my repayments goes straight to paying off the principal amount. Soon I’ll be ready to hand back some of my parent’s hard earned money.
I feel incredibly grateful that my family has been willing and able to help me reduce the burden of my mortgage, but I also feel a twinge of guilt. Some of my friends, most in their 40s with young families, lament that home ownership is something that is still far out of their reach. Some struggle to save for a deposit, while others have resigned themselves to being life-long renters. I know I’m one of the lucky ones because home ownership is now within my grasp, but I never would’ve got here so quickly if it weren’t for my parents and the values that they were raised on.