By Aidan Wondracz For Daily Mail Australia
Published: 01:55 BST, 18 June 2019 | Updated: 06:15 BST, 18 June 2019
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Parents have been urged to think twice about helping their children buy their first home because they risk losing their money altogether as the housing market plummets.
The Australian Prudential Regulation Authority fears that parents will be left destitute after investing in risky property leaving them unable to cope in their retirement.
Several banks are now issuing tougher terms for co-borrowers and have taken it on themselves to warn parents of the risks before they shell out for their children's deposit.
NAB now requires parents to prove they have obtained legal advice, the Financial Review reported.
Digital Finance Analytics (DFA) principal Martin North noted some children were not able to make their repayments, leaving parents shortchanged.
