Homeownership is becoming increasingly difficult for younger generations. Does your child dream of buying a home but feel held back by high prices and interest rates? Would you like to help them? Here are four tips.

1. Consider your financial situation

Giving your child money toward their home purchase shouldn’t jeopardise your own financial situation. Consult a financial planner before taking any steps to support your child. They’ll offer professional advice and help you determine what you need to do to maintain your lifestyle.

2. Establish an emergency fund

Although you want to do everything within your power for your child, it’s important to have a cash cushion to help you deal with the unexpected. Make sure you put enough money aside so you’re prepared to deal with unforeseen expenses like healthcare, emergency home repairs or a change in marital status.

3. Prepare for the long term

It may take longer than expected for your child to pay you back. You may only get back a portion of what you lent them. Be prepared for any eventuality.

4. Consult a lawyer for legal documents

A lawyer can help you determine which legal documents you need and how to correctly fill them out. They’ll also inform you of any legal implications your monetary contribution could have if, for example, you suddenly pass away.

Before providing your child with financial assistance, ask yourself the right questions and contact a professional to guide you through the process.