Options for First Home Buyers in Auckland

Buying a home is often the biggest financial commitment many people will make. With Auckland property prices remaining high, first home buyers are increasingly turning to alternative ways to get onto the property ladder—such as buying with friends or relying on a family guarantor.

Buying Property with Friends or Family

One common option is to purchase property jointly with friends or family. In these cases, co-buyers are typically registered as tenants-in-common, either in equal or unequal shares.

Benefits of buying jointly include:

• Shared deposit and loan repayments

• Split ongoing costs (rates, insurance, maintenance)

• Shared responsibility for upkeep

  
  

However, it’s essential to put a Property Sharing Agreement in place. This should record:

• Each person’s financial contribution

• Each person’s responsibility for future costs

• What happens if someone wants to sell their share

  
  

A written agreement reduces the risk of disputes and protects all parties involved.

Using a Family Member as Guarantor

Some first home buyers may ask a parent or close family member to act as a guarantor on their loan. This can be helpful for buyers with small deposits who may not meet lending criteria on their own.

Key things guarantors should know:

• You are legally responsible for the mortgage if the borrower defaults

• You can limit the amount and time period of your guarantee

• You should consider getting an indemnity from the buyer to protect yourself

• The guarantee should be reviewed regularly as equity in the property grows

  
  

Going guarantor is a serious commitment and should never be entered into without legal advice.

Legal Advice is Essential

Whether you're buying with someone else or involving a guarantor, it’s critical to get legal advice before entering any agreements.

At Arnet Law, our experienced property lawyers in Pukekohe, Waiheke, and South Auckland can guide you through every step. We'll help protect your interests and ensure everything is structured properly.

Contact Arnet Law today for professional guidance on your first home purchase.