That Home Loan Hub

Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.

Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!

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That Home Loan Hub

Saving A Family Home Purchase

January 02, 2026 • Zebunisso Alimova

0:00 | 5:11

A small policy error almost cost a family their smooth home transfer—until we pushed back with the right rules and the right evidence. We walk you through the exact scenario: a child buying a parent’s house using gifted equity, a banker insisting on 5 percent genuine savings, and the precise reason that condition didn’t apply. It’s a practical, real-world breakdown of how deposit thresholds actually work, how KiwiSaver is treated, and why the 20 percent mark matters more than most people realise.

We unpack the difference between standard high LVR lending and cases where Kāinga Ora programmes allow more flexible gift use. You’ll hear how we assessed the loan-to-value ratio, the documentation that made the gift watertight, and the way we escalated the conversation when the initial call didn’t align with policy. Along the way, we share the tools that help when interpretations clash: referencing recent comparable approvals, requesting clear policy citations, and keeping the dialogue respectful and focused on the client’s outcome.

If you’re navigating a family transfer, first-home purchase, or any deposit made up of gifted equity and KiwiSaver, this story offers a blueprint. You’ll learn where genuine savings are required, when they’re not, and how to frame your application so it lands cleanly with credit teams. Subscribe for more New Zealand home lending insights, share this with someone weighing a family equity transfer, and leave a review with your questions—what deposit hurdle should we unpack next?

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SPEAKER_01 0:10

Hello, welcome back. This is the episode for you because I'm so happy. So because I just saved a deal. I just saved a deal, Kunch. Kyoda. Hello. How

A Win Worth Celebrating

SPEAKER_01 0:20

are you? Good. I just feel so proud of myself in this moment. I cannot share the joy. Tell us about it. Alright, so deal. We have this family where a person is buying a house of the parent. So child buying a house of the parent. Parent

The Family Home Transfer

SPEAKER_01 0:38

is gifting them equity in a house. We've done that lots. We've done this heaps. Yeah. Now the curveball here is I think either the banker that we were dealing with is not experienced enough or it's just a Christmas glitch. I don't know. But

Banker Pushback On Deposit

SPEAKER_01 0:54

what happened was the banker pushed back saying that they cannot accept the full gift of an equity as they deposit. That the client has to come up with at least 5% genuine savings for this deal. They didn't have a Kiwi Saver? They did not have a Kiwi Saver. They don't have any savings because they don't live in this country, they live overseas. So this is like a family home that is getting passed on from elderly parents to a child, and the child

The 5 Percent Rule Explained

SPEAKER_01 1:23

just needs a little mortgage to pay back the parents something. So the interesting bit here is we've done hundreds of deals like this, and usually it flies. But as I said, it must have been a glitch because when the banker pushed back, the first reaction was like, What really did we get something wrong here? But I remember clearly the rules are, and this is something you cannot find in their guides. So all those new advisors listen up, and all those clients that have been pushed back, listen up. So the rules are if you don't have 20% deposit, if you don't have 20% deposit, that's when the bank requires you to have at least 5% genuine savings. Yep. This rule came into place. I was at the bank at that time, so we're talking between 2012 and 2015. I recall. That's when I think it came out.

SPEAKER_02 2:14

I think that's when triple CFA and all that came in.

SPEAKER_01 2:17

Correct. So RBNZ rule is you have to have at least 5% genuine savings if you do not have 20% deposit. Now, in this client's case, they did have 20% deposit. They did. So what that meant is that rule does not apply to them. Yep. Correct to get away from that rule. However, about three years ago, I did do a case, and there is an interesting curveball here. If it's a Kayanga aura deal,

Kāinga Ora Vs High LVR Nuance

SPEAKER_01 2:49

then you can use all of that as gifted, even if you don't have 5% genuinely saved. So the whole 5% can be gifted to you. But if it's outside of Kayanga Aura deal, so if it's a high L VR, non-Kayanga Aura deal, then you do have to have 5% genuine savings. So this is where things get a little bit muddy. And this is where you have to clearly understand what the rules are. So you can't push back on the banker because sometimes they get it wrong too. They're only humans, just like us. And look, if I'm getting something wrong in this episode, please do let me know because I would love to hear your thoughts. But the uh outcome of this was that we just wanted and we just made it approved and pushed it across the line. So there you go. That's my big win. Woo-hoo, well done.

SPEAKER_00 3:39

So excited for me.

Policy Interpretation And Advocacy

SPEAKER_00 3:41

Well done. I think because you and I know this thing.

SPEAKER_02 3:44

Yeah, I was just like, okay, well, that's normal. And like, I guess it's also open to interpretation, right? It's how bankers interpretate their policy and how advisors would interpret that. And it's just open discussion, I think, with the bankers and the advisors to ensure that we're getting the right outcome for the client. Yeah.

SPEAKER_01 4:04

Because I think the other saving grace was that we've just done a deal literally that same week with the same bank, with the same scenario, and it went through no problems, no questions asked. So it was really strange how this bank and like I said, we've done we've done a few of those scenarios with no issues. No, but I just thought I'll remind people about this whole 5% genuine savings rule and in what situation it does apply and what situation it does not apply.

SPEAKER_02 4:31

And

Recap And KiwiSaver Clarity

SPEAKER_02 4:32

just to recap, Kiwi Saver is classified as genuine savings. It is. Yeah. Yeah, KiwiSaver is genuine savings. So for those people who are like, oh, I don't have 5% in my bank account, it's okay.

SPEAKER_01 4:44

It's okay. We can make that work. Yeah. Awesome. Well, thank you so much. This was my highlight. We're gonna keep it short and simple. And cool, well done. If I did get something wrong, guys, do let me know. Or share your stories of your success, um, of how you managed to get your deals to work. Thank you so much. Thanks, bye.

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