The bank of Mum and Dad is increasingly present in the capital's housing market, says a Wellington mortgage advisor.
New data released by OneRoof.co.nz on Monday showed Wellington had seen the biggest increase in deposit requirements in the country, with a 20 per cent deposit on the average home setting first-home buyers back $171,000.
Loan Market mortgage advisor Craig Pope said while a 20 per cent deposit was not always necessary, family assistance for first-home buyers was becoming more common.
"No matter what you're deposit level is, it is very difficult to try and get up and get saving and get to a meaningful-sized deposit, especially in a hot property market," he said.
"What we are seeing is the bank of Mum and Dad is helping out more and more these days … to help their son or daughter get to a level of deposit that gives them some hope."
He said the parents of first home buyers most likely had houses that had gone up in value, enabling them to help their children get on to the property ladder.
"I've noticed probably 60 per cent of our first home buyers are getting some sort of assistance from Mum and Dad – sometimes it's a small amount, sometimes it's a large amount," he said.
"Certainly around the central Wellington region it's looking more and more necessary."
Pope said 10 per cent deposits were possible, but often required first home buyers to meet rigid criteria, and limited their choices.
"There are quite a few hoops to jump through and banks have always in the past – and probably will into the future – been very strict on low-deposit lending."
"And with a low-deposit loan you can't be as aggressive with your offers as you can be with an offer with 20 per cent deposit behind it."
And Wellington's hot property market was unlikely to cool down, Pope said.
"I don't think it's going to get any easier," he said.
"I think first home buyers are going to get pushed further and further out into the suburbs, just to get on to the ladder.
"It could be that properties like apartments become a lot more popular if more of them get built, but I think while there's still a big demand for property it's just going to keep getting harder for first home buyers."