Bank of Mum and Dad: Family Lending Guide for New Zealand Homebuyers

The Real Talk on Family Lending

Let's be honest - buying your first home in today's market feels impossible without help. Enter the "Bank of Mum and Dad," where family steps in to bridge the gap between your savings and that deposit you need. But here's the thing: family money comes with strings attached, and not the kind you're thinking of.

We're talking legal strings. Financial strings. The kind that can turn family dinners awkward if you don't handle them right from the start.

Why Family Money Gets Complicated Fast

When your parents hand over that deposit money, it might feel like a gift, but the law doesn't always see it that way. If you're living with a partner, that family contribution could become "relationship property" - meaning if you split up, your ex might have a claim to half of what your parents gave you.

Yeah, we know. That's not what anyone signed up for.

This is where things get real. New Zealand's equal sharing laws don't care whose parents wrote the check. If you're married, in a civil union, or even in a de facto relationship (which can happen faster than you think), that money becomes joint property by default.

The SureThing Approach: Keep It Simple, Keep It Legal

Here's where we come in. While complex relationship property agreements need proper legal advice and certification, there are simpler agreements you can create to protect everyone involved.

For the Simple Stuff: If you need a basic loan agreement with your parents - clear terms, repayment schedule, interest rates - SureThing can help you create a legally binding agreement in under 2 minutes. No lawyers, no drama, just a clear understanding of what everyone expects.

For the Complex Stuff: When you're dealing with relationship property laws and protecting family contributions from future claims, you'll need a proper Relationship Property Agreement (also called a prenup). This requires legal certification and independent advice for both parties.

The Documents You Actually Need

Deed of Gift or Deed of Debt: This formalizes whether the money is a gift or a loan. Banks often require this anyway, so get it sorted early. For straightforward family loan agreements, SureThing's templates can handle this quickly and affordably.

Relationship Property Agreement: This is the big one. It protects your parents' contribution from becoming relationship property that gets split 50-50 if you separate. This needs proper legal advice and certification - it's not a DIY job.

The Bottom Line

Your parents worked hard for that money, and you shouldn't have to choose between buying a home and protecting their investment. The key is getting the right agreements in place before problems arise.

For simple family loan agreements, SureThing makes it easy to create clear, legally binding documents without the legal fees. For complex relationship property protection, invest in proper legal advice.

Because the last thing you want is family money becoming family drama.

Ready to protect your family's investment? Start with SureThing for simple agreements, and consult legal professionals for complex relationship property matters.