FAQs
CoFund Tool
Do I still need CoFund if my parents are gifting me the money and don’t want it back?
We think so! The CoFund tool can help you consider the details of your arrangement so those involved can discuss how it will work. Also, for certain responses the tool generates a Legal Agreement (or Declaration of Gift) that can be presented to a bank as proof the money is a gift.
What are the different options that the CoFund tool might suggest?
Depending on your responses, the tool may suggest that you consider providing or receiving a guarantee, entering into a separate property sharing agreement, or a CoFund Legal Agreement to record any gift or loan.
Do I need to be a New Zealander to use CoFund?
Homebuyers must be New Zealand residents or citizens to own a home in New Zealand. If you are unsure, visit New Zealand Now.
What does being a guarantor mean?
Being a guarantor means that a home you own is used as extra security to ‘guarantee’ a loan. While there are different types of guarantees, Contributors and Homebuyers should be aware that if the Homebuyers are unable to meet their obligations or do not make repayments, the guarantor may be liable for the repayment of the Homebuyers’ loan and their home may be sold. We strongly recommend that the Contributors seek independent legal and financial advice before entering into a guarantee.
CoFund Legal Agreement
Can I use the CoFund Legal Agreement in conjunction with my KiwiSaver and other schemes e.g. First Home Loan or First Home Grant?
The Legal Agreement is an agreement between Contributors and Homebuyers and will often be able to be used alongside other initiatives to help first home buyers get onto the property ladder. As each scheme or loan has different criteria and terms it is important to contact the relevant provider to understand the eligibility or lending criteria.
What does "free-to-create" mean?
This means that while it is free to create a CoFund Legal Agreement from the questions asked within the tool, there may be additional fees related to obtaining independent financial, legal and tax advice on the document.
Can I have multiple Contributors?
Yes, if you have multiple Contributors on the same property, you can use a separate Legal Agreement for each Contributor.
Can I use the CoFund Legal Agreement for an investment property?
The Legal Agreement generated through the tool is designed to be used for owner occupied properties.
Is the CoFund Legal Agreement legally binding? (Do I still need to speak with a lawyer?)
It is a legally binding agreement, if signed by all parties, however BNZ strongly encourages you to seek independent legal advice before you sign.
Is my CoFund Legal Agreement still legally binding if CoFund does not exist in the future?
Yes. As the Legal Agreement generated through the tool is between Homebuyers and Contributors, it will be enduring whether the CoFund website exists in the future or not.
What if the Contributor goes through bankruptcy?
As the CoFund Legal Agreement is between Homebuyers and Contributors, any unforeseen events will need to be negotiated between the two parties.
Are there any hidden costs involved in obtaining the CoFund Legal Agreement
No hidden costs! However, this is a free-to-create agreement generated through your responses within the tool so it may not address your individual circumstances. Any legal, financial or tax advice that you need to seek will likely be charged for.
Is there a limit in the number of Contributors and Homebuyers involved in an agreement?
We currently allow up to two Homebuyers and one Contributor, although the Contributor can be a legal entity such as a family trust and you can have multiple Contributors as trustees of that trust.
What kind of properties can I buy with my CoFund Legal Agreement?
The Legal Agreement generated through the tool can be applied to a range of property types throughout New Zealand. However, this is ultimately determined between the Homebuyer and the Contributor.
Can I buy properties overseas with my CoFund Legal Agreement?
No, the Legal Agreement generated through the tool has been designed for residential properties within New Zealand.
Is there a loan amount limit for the CoFund Legal Agreement?
The loan amount a Contributor makes available to the Homebuyer under the Legal Agreement is to be determined between the Homebuyer and the Contributor.
Do I get approved for a BNZ home loan if I use the CoFund Legal Agreement?
The CoFund Legal Agreement generated through the tool is independent of the BNZ Home Loan offering. A customer will need to complete a home loan application with BNZ and meet the bank's lending criteria to be approved for borrowing.
Who is responsible for enforcing the CoFund Legal Agreement?
The Legal Agreement is between Homebuyers and Contributors, therefore enforcement can be done by either party or through the courts.
I’ve already purchased my home with some financial help, is it too late to put a CoFund Legal Agreement in place?
The current version of the Legal Agreement generated through the tool cannot be applied retrospectively but you could speak to a lawyer and draft an agreement specific to your situation.
Will my CoFund Legal Agreement work in any region in New Zealand?
Yes! However, as CoFund is in Beta, we are working with a limited number of Home Loan Specialists which means you may need to work with a Home Loan Specialist outside your local area.
Do I have to be a BNZ customer to use the CoFund Legal Agreement or can I take this agreement to any NZ bank?
No, you don’t need to be a BNZ customer to use the Legal Agreement, however, each bank may have their own policies in relation to gifts and loans so please check with your bank beforehand.
Have any unanswered questions? Let us know