Family cash helps kids find a home

The bank of mum and dad is increasingly present in the capital’s housing market, says a Wellington mortgage advisor.

New data released by OneRoof. co.nz on Monday showed Wellington had seen the biggest increase in deposit requirements in the country, with a 20 per cent deposit on the average home setting firsthome buyers back $171,000.

Loan Market mortgage advisor Craig Pope said while a 20 per cent deposit was not always necessary, family assistance for first-home buyers was becoming more common.

“No matter what your deposit level is, it is very difficult to try and get up and get saving and get to a meaningful-sized deposit, especially in a hot property market,” he said.

“What we are seeing is the bank of mum and dad is helping out more and more these days . . . to help their son or daughter get to a level of deposit that gives them some hope.”

He said the parents of first home buyers most likely had houses that had gone up in value, enabling them to help their children get on to the property ladder.

“I’ve noticed probably 60 per cent of our first home buyers are getting some sort of assistance from mum and dad — sometimes it’s a small amount, sometimes it’s a large amount,” he said.