Helping Children Buy Calculator

This calculator shows what happens when you help a child buy their first home by gifting or lending money toward their deposit, both for their borrowing power and for your own finances. You enter the property price, how much deposit your child has already saved, the amount you are gifting or lending, and the buffer you want to keep for yourself after helping. It adds your child's savings to your contribution to work out their total deposit and the deposit as a percentage of the price, then shows the loan they would still need and the resulting loan-to-value ratio, since a lower ratio generally means easier approval and a better interest rate. It also displays a note confirming the buffer you have left, as a reminder to check that is enough for your own retirement and emergencies before committing funds. Use it to see how a proposed gift or loan shifts your child from, say, a 10 percent deposit toward the 20 percent mark that often unlocks standard lending terms, and to weigh that benefit against what it leaves in your own accounts. It is worth deciding early whether the money is a gift or a loan, and documenting either choice in writing, particularly for larger amounts. This is an indicative estimate only, so get independent financial and legal advice before gifting or lending a significant sum toward a deposit.

Calculate.co.nz is proud to be partnered with Premium Homes, a recognised leader in eco-friendly, sustainable, and energy-efficient homebuilding. With a dedicated team and award-winning experience, they create homes that prioritise health, comfort, and long-term performance. Their founders, Andrew and Kelly, set out to raise the standard of residential construction in New Zealand by combining practical building expertise with a clear commitment to doing things better for homeowners.

A bigger deposit lowers the loan-to-value ratio, which can mean easier approval and a better rate. If it is a loan rather than a gift, document it. Keep enough buffer for your own retirement and emergencies. Estimate only, get advice for large amounts.