We want to help our 28-year-old buy his first home. Should we take out a mortgage?

September 9, 2026 — 3:00am

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We would love your advice on helping our 28-year-old son buy his first apartment. He has saved more than $200,000 but, having recently completed his PhD, is looking for a postdoctoral position. Meanwhile, he earns money tutoring and marking exams, which makes obtaining a mortgage difficult. He currently pays $500 a week rent.

We are self-funded retirees and don’t want to gift him money or compromise our retirement capital.

We are considering using his savings as the deposit on a property costing around $600,000 and taking out the mortgage in our names, with him making the repayments. We would document the arrangement and amend our wills so our other child is treated fairly.

Is this sensible, and what structure would best protect us while helping him buy his home?

It’s most important that your names do not go on the title deed. Otherwise, you could face substantial capital gains tax when transferring your interest to him, and he might lose valuable first-home buyer stamp duty concessions.

I recommend going through a good mortgage broker. The challenge is finding a lender prepared to let your son own the property while you become responsible for the mortgage if necessary. The broker should investigate whether his $200,000-plus deposit and current........

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