Are you working hard but still can’t quite save that elusive 10-20% deposit? You’re not alone. For many first-home buyers in New Zealand, the dream of home ownership feels just out of reach - even with the help of KiwiSaver. But there’s a smart, collaborative solution that’s helping more Kiwis get on the property ladder sooner: Joint-ownership.
JOINT-OWNERSHIP EXPLAINED
Joint-ownership or co-ownership, simply means purchasing a home with someone else - often a trusted friend, sibling, or partner - and sharing the costs of buying and owning a home. It’s an increasingly popular way for first-time buyers to break into the market without needing to go it alone.
Here’s how it can work:
• Split the deposit: Each co-owner contributes a share (e.g. 50/50) of the required deposit, significantly lowering the upfront cash needed.
• Split the mortgage: You borrow together and repay the loan jointly, making repayments more manageable.
• Split the bills and maintenance: From rates and insurance to power and internet, the cost of living is halved.
• Own your future: You’ll be building equity in a home, instead of paying rent, and creating a real pathway to long-term financial security.
BANKING BASICS: WHAT YOU NEED TO KNOW
Banks in New Zealand allow multiple people to apply for a home loan together. This is known as joint borrowing, and there are a few key things to keep in mind:
Mortgage Application
You’ll apply as co-borrowers, and the bank will assess both (or all) applicants' income, expenses, and credit histories. Your combined income can improve your borrowing power.
Loan Responsibility
All co-borrowers are individually and together liable for the entire loan - which means if one person can’t make repayments, the others are legally responsible for covering the full amount.
Boosting Your Borrowing Power with Support
If your family wants to help you get into your first home - but doesn’t have cash to gift – some banks have solutions for you to leverage the equity in your parents home. For example, Westpac NZ offers a Family Springboard home loan that lets a parent or close relative support your application in two ways:
As a co-borrower: You borrow the first 80% of the home loan in your name, and the final 20% with your family member. They’re only responsible for that shared portion which can make it a more palatable option for parents.
As a guarantor: Your family member uses equity in their own home to guarantee around 20% of your purchase. You take out the full home loan in your name but benefit from their backing.
This option can reduce the deposit you need, help you avoid low equity fees, secure more competitive interest rates, and strengthen your loan application - all without needing a cash handout. It’s a smart way to team up with your family to bridge the gap and get into a home sooner.
PRACTICAL STEPS TO JOINT-OWNERSHIP
Account Setup
You’ll typically need a joint bank account to pay the mortgage and household bills from. It’s also a good idea to create a shared budget and check in regularly to keep things on track financially.
Legal Considerations: Protecting Your Partnership
While co-owning a home is an exciting opportunity, it’s also a serious legal and financial commitment. It’s important to seek independent legal advice before signing anything -and to document your arrangement properly.
Get a Co-Ownership Agreement
A lawyer can help you draw up a Co-Ownership Agreement (also known as a Property Sharing Agreement), which outlines:
• Ownership shares (e.g. 50/50 or another split)
• What happens if one person wants to sell or move out
• How bills, repairs, and maintenance will be managed
• Dispute resolution processes
Choose the Right Property Title
You can choose to own the home as:
• Joint Tenants – equal ownership, with the property automatically passing to the other owner if one of you dies.
• Tenants in Common – allows for flexible ownership shares and control over what happens to your share in your will.
Most friends and siblings opt for ‘Tenants in Common’ which provides clearer legal boundaries and future flexibility.
Choosing the Right Home
Co-ownership works especially well when you’re building a new home. You can choose a layout that supports dual living, enjoy the benefits of a fixed-price contract, and move into a stylish, warm, low-maintenance home with none of the unknowns that come with buying an older home.
At Generation Homes, we make the process simple and transparent, so you and your co-owner feel confident every step of the way.
Read More
Discover how co-ownership helped this trio build their first home with Generation Homes.
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Whether you're teaming up with a friend, sibling, flatmate, or family member co-ownership could be the key to unlocking home ownership sooner. Let us help you build a future that works for both of you. Generation Homes – Building Dreams, together.
NOTE: This article provides general information only and is not intended as financial or legal advice. You should seek independent professional advice before making any decisions regarding joint home ownership, mortgage arrangements or entering into any legal agreements.