OK, so we joke about the Bank of Mum and Dad, but having the backing of your folks can be a smart way to get ahead when it comes to buying your first pad. Basically, your parents would be guaranteeing 20% of the cost of your house and land package using the equity they have in their own home. (As a rule of thumb, equity = the difference between what their home is worth and how much they owe on it.) Not only does it mean you have to find less deposit, but a guarantor loan can usually do away with the need for mortgage insurance (LMI). This type of loan is usually a bit more flexible, too, when it comes to interest rates, features and how the loan is structured.

We’re not suggesting for one minute that you have to ask Mum and Dad to go guarantor (although if you did, they’d probably be pleased to know you’re looking at Plunkett, a name they already know and trust.) We simply want to make sure you’re aware of all your options. If it’s something you think you’d like to find out more about, our Step One finance gurus have all the answers.