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
Struggling to buy a home? The bank of Mum and Dad is a significant lender in New Zealand, offering several ways to help you onto the property ladder.
Popular options include gifting a deposit, acting as a guarantor, providing a formal loan, or co-owning the property. Other help can involve letting you live rent-free to save.
It's vital to seek legal and financial advice to create formal agreements, protecting all parties and ensuring your parents' financial future isn't compromised.
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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