A family guarantee lets parents help their children buy a home without handing over cash. The parents offer equity in their own property as extra security for the child's loan, usually covering the 20% deposit, and the guarantee can often be removed after a few years once the child's property has grown in value or the loan has come down.

In this video, McKern financial adviser Shahin Tehrani explains how guarantees work as Southeast Queensland prices keep rising, and how children can give their parents peace of mind about the risk: a will and enduring power of attorney that protect the guaranteed amount, and personal insurance. Life and total and permanent disability (TPD) cover pay a lump sum that can clear the guarantee, and income protection (typically up to 70% of your income) helps keep up repayments if illness or injury stops you working.

In this video

0:00 Why it's harder to get into the market

1:02 How a family guarantee works

1:40 Estate planning to protect your parents

2:40 Insurance: life, TPD and income protection

General information only, not personal advice.