Parents and grandparents are being warned to think carefully before handing over nest eggs to younger relatives desperate to buy a first home.
New Reserve Bank lending restrictions making it harder to get a home loan with less than 20 per cent deposit have sparked fears many first-home buyers will turn to their families to help raise the necessary funds.
Age Concern has issued a warning to its members, saying many parents and grandparents may be pressured to lend younger members of their families money or sign on as a guarantor for their mortgage.
Age Concern chief executive Ann Martin said when grown-up children got into financial strife they often asked parents to dip into savings, or expected parents to front up with cash.
She said parents needed to learn to say 'no'. Ms Martin recommended older people discussed potential lending arrangements thoroughly first and sought legal advice before agreeing to anything.