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Articles: Property Relationships

The Perils of Parental Lending

7 August 2018

It has become increasingly difficult for first home buyers to enter the property market in New Zealand. The amount of deposit required in most regions has increased significantly, with house prices growing at a fast rate in comparison to peoples’ incomes. Banks have put tighter controls on low deposit lending and a flow on effect is large numbers of first home buyers purchasing properties with the help of their parents. This is usually by them either acting as a guarantor on the mortgage or advancing funds as a gift or a loan to help with the deposit.

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