Young people may be saving more but many still need family help to get into their first home.

Rising property prices might be good for those who already own a property, but for those trying to buy their first home, it means the deposit they require keeps rising. According to Canstar Blue, those struggling to achieve the required deposit are using a family security guarantee. With a family member acting as guarantor, first home buyers have more borrowing power and can avoid paying lenders mortgage insurance.

Guarantees mean family members don’t have to fork out any money directly to the borrower and once the home’s equity reaches 20% the guarantor can apply to the lender to be released from the obligation.

Many parents are living in properties worth a lot more than they owe on it. They can use that equity to help their children enter the property market. But parents are warned that they should weigh up the risks and obligations carefully before committing.