Bank of mum and dad alive and well

A recent Kiwibank survey of 2008 respondents shows 31% of those with children can give mortgage borrowing support to them. And 65% of Gen Z and 43% of millennial homeowners have used parental support to get into a home.

Eureka Financial Services says as the economic landscape continues to evolve, it is important to ask if the ‘bank of mum and dad’ will still be a viable option next year, or is it time to rethink this financial assistance model?

While the bank of mum and dad will likely remain an essential financial tool for many young Kiwis, the benefits must be weighed against the risks, the financial services company says. 

While this might be a prime time for families to step in and offer support because of falling interest costs, Eureka says, however, parents must carefully consider their ability to assist without compromising their financial future.