WHAT IS THE BANK OF MUM & DAD?
The Bank of Mum & Dad (BOMAD) is the colloquial term used to describe parental funding. This funding begins when the children are still young, with things
like pocket money. As the child grows into their adult years, the loans become more substantial and can includes loans for cars, 21st birthday parties and even home loans.
Most adult kids fly the nest eventually, but for many, financial support from their parents remains ongoing. Finder research shows that almost half (44%) of Australian parents help their adult offspring out with expenses after they've left home.
Parents are assisting their children by providing money for things like childcare, bills, rent and home loans. In the last 12 months, it is estimated that the BOMAD has $34 billion in outstanding loans.
While the term 'The Bank of Mum & Dad' is relatively new, in reality it’s always been there, now it just has a name. Communities around the world use 'The Bank Of Mum & Dad' as a starting point in their financial journey, and in the US it’s the second largest source of finance outside of credit cards.
Loaned in Australia By Parents
Average Parent Home Loan Contribution
Largest Lender in Australia
Increase in the Past Two Years
WHY CHOOSE PAYMYPARENTS?
Incredibly, the Bank of Mum & Dad is now one of the largest lenders in Australia AND has grown from $1.8 Billion in 2012 to a staggering $34 Billion
in the twelve months preceding May 2021.
While the Bank of Mum and Dad is often the cheapest and safest option, the issue is that in most instances the loan is done with no documentation which has the ability to cause friction in families when repayments are due. With no documentation, both the Parent/Lender and the Child/Borrower are at serious risk.
It may even affect the extended family members when loans are created, not documented and the Parent/Lender passes away. While this is not a nice thought, it is just one of the endless negative possibilities that can be solved with one simple solution - PayMyParents.com
We have created an Australian, world first system, that manages loan repayments in a simple to use, automated and scheduled manner. We provide the option of a FREE legal loan document or you have the option of uploading your own document to record the loan.
How Does it Work?
The Bank of Mum & Dad in the Media
With the rapid growth of 'The Bank of Mum & Dad' in the last few years, media coverage has grown with it. We've compiled all the best news, video and reports in one, convenient location for you. We hope this information gives you the resources, support and clarity you need to navigate the world of parent-to-child lending.