33 Wendell wants to purchase his first home, but has been unable to save enough money for a deposit. The house will cost $220 000, but the maximum mortgage loan Wendell can obtain is for $176 000. Wendell plans to borrow the remaining

$44 000 required as a deposit from his parents. Effectively what proportion of debt and equity is Wendell planning to use to finance the purchase? What are the potential problems with Wendell’s strategy?