PHOTO: MANDY GODBEHEAR/STUFF
It’s becoming harder to tap into the “bank of mum and dad”.
Lenders and mortgage brokers said bank lending requirements were making it tougher for first-home buyers to use their parents’ support to get a home loan.
Over recent years, many buyers have been able to get a foot on the property ladder by using their parents’ properties as security. In March it was estimated that half of all buyers had their parents’ help, and up to 90 per cent in some parts of Auckland.
“It is still possible but not easy because, back in the day, banks could asset lend in the comfort that they would be repaid. Asset-rich parents were not assessed on their ability to repay the loan – the asset was good enough,” said peer-to-peer mortgage lender Southern Cross Partners chief executive Luke Jackson.
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