Refinancing your home for your child first home deposit isn't the ideal way as you might be tied down with your own, as i discussed the issue of how to obtain this isn't the best option. Your child, shouldn't exceed $60,000 at this date for a home loan as the salary of your child will be to low to purchase the 500k to 600k even still there wages will be to low for any loan consideration and perhaps the security of their working history. Normally the first home deposit will be 10% of the purchase value of a house, and the loan amount should be no higher then 300k. The lower the better it is as to how much you will need to pay, having paying the loan it should really exceed $1700 dollars of monthly payments. For that reason is that mortgage interest rates will continue rising to a point where you will be having negative cash flowing in each month and seeing your savings depleting over the year. The mortgage rate can increase but your wages will remain the same, if it doesn't how much more will it increase?
If a house now is worth on the market at $300,000 dollars your looking at around about 500 to 600k by the time your child will be paying for a 3 bedroom home. The house would be worth this much because of the continuation of the mortgage interest on a 300k loan. So you may need to refinance what you might not afford now. It would be much harder to get a loan for a $500 to $600k as the amount for the deposit will be much higher then today's home if you were to buy the same house.
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