How to Help Your Kids Buy their First Home

How to Help Your Kids Buy their First Home

Being able to watch your children purchase their first home is an important milestone for any parent. As a parent, you play an important part in your child’s home ownership journey. From providing them with financial literacy and education in the early years to setting up credit cards and bank accounts in the later years, your involvement can make a real difference.

In this article, we will delve into some practical tips and strategies to assist you in helping your child purchase their first home.

Start Early with Financial Literacy

It’s important for a child to build strong financial literacy from an early age. Teaching children about money management, budgeting, saving, and the importance of good credit is an important task for any parent. By encouraging your child to develop a savings plan, they can better understand the value of money when it comes to purchasing something. It is recommended that you set your child up with a youth bank account (such as the ASB Headstart program). This allows them to track their savings and set goals in order to make future purchases.

Expectations v Reality

More often than not, we set goals that are unachievable. In terms of home ownership, it’s important that your children set realistic financial goals that can meet their expectations. Helping your child understand the various costs associated with purchasing a home can assist them in setting a savings goal. You can teach them about deposits, mortgages, property taxes, and maintenance costs.

Financial Assistance

We often find ourselves in a situation where we have to financially assist our children in purchasing their first home. As parents, we want our children to have the same opportunities that we did. However, with the current economic climate and interest rate pressures, it can be incredibly difficult to secure a deposit on a mortgage. Some ways of assisting our children include offering a monetary gift, a loan, or co-signing on a mortgage to help them secure more favorable terms. This must be done in alignment with your current financial situation, so it’s important to evaluate that before making any financial decisions.

Government Programs and Assistance

In New Zealand, there are many government and assistance programs that can help your child purchase their first home. You should make sure that they understand the process of KiwiSaver withdrawal, which allows them to take money out of their KiwiSaver to use to purchase their first home. There is also the Home Start Loan, which is a government-set mortgage of 5% that is only available at certain banks and credit unions.

Become a Financial Resource

As a parent, you have a wealth of knowledge and experience in comparison to your children. It’s important that you recognize this as a resource. By offering guidance on neighbourhoods within your metropolitan area, your child can make a better-informed decision on the location of their home. You can also educate your child on the responsibilities of home ownership, such as various repairs and maintenance, payment of taxes and insurance, and complying with local council regulations. These are all crucial aspects that must be understood prior to purchasing a home. If your child is purchasing a home overseas, it is recommended that they seek the advice of a local expert in order to ensure a smooth transaction.


For many parents out there, it is a dream of theirs to see their child be able to purchase their first home. This important milestone requires careful input on your end. For more information on helping your child purchase their first home, contact Quay Law at 09 523 2408