The pros and cons of becoming a mortgage guarantor for your adult kids

Becoming a mortgage guarantor is a real roll of the dice for your future finances. Source: Getty.

Using your house as collateral for your child’s home loan is a big step that could provide them with a vital boost onto the property ladder … or leave you struggling to cover mortgage repayments on their behalf. So before you make any agreements to becoming a mortgage guarantor, it’s important to take a long, hard look at your child’s relationship with money, as well as what you’ll lose if it all goes south.

 

 

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Have you been a mortgage guarantor for one of your children? Did it work out well for your family?

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