Buying guide
5 ways your parents can help you buy a home
Property ladder feeling out of reach? Here's how your parents might be able to help.
4 July 2023
AI summary
The "Bank of Mum and Dad" is a significant force in the NZ property market. Parents can help children buy a home in several ways.
Key methods include:
- Gifting a deposit
- Providing a formal loan
- Acting as a guarantor on the mortgage
- Offsetting the loan with their savings
- Co-owning the property
It is crucial for all parties to seek independent legal and financial advice and use formal documents like Property Sharing Agreements to protect everyone's interests.
Here’s what you’ll learn:
You should seek reliable legal advice before committing anything.
1. Parents use equity in the family home
2. Parents make a loan to the children
Parents may use the family home as security against a loan.
3. Parents act as guarantor on the home loan
4. Parents offset part of a child’s mortgage
5. Co-owning with parents
Other things parents can do to help you on your way
In all cases, it is important to ask the tough questions up front.
Key questions for Mum and Dad before they take the next step
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