14 hours ago
One in five first home buyers turn to the bank of Mum and Dad
With housing affordability an ongoing issue in Australia, with house prices continuing to outpace incomes, many young Australians are turning to their parents for help to buy their first property.
New research from comparison site Finder has revealed that almost 20 per cent of new home buyers dipped into the bank of mum and dad to purchase their new home.
The Finder's First Home Buyer Report 2025 - based on a survey of more than 1000 first home buyers in Australia - found almost 1 in 5 (17 per cent) of first home buyers received financial help from their parents to save their deposit.
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This equates to almost 20,000 first home buyers a year who are now lucky enough to receive financial assistance from their parents.
The report also revealed that the proportion of new buyers tapping into the bank of mum and dad has increased significantly from just 11 per cent in 2022.
Sarah Megginson, personal finance expert at Finder, said millions of Aussies are now counting on the bank of mum and dad to secure a home in Australia.
"The bank of mum and dad has become one of the biggest unofficial lenders in the country," Megginson said.
"For many young Australians, homeownership feels like a dream that won't be realised, unless you've got parents who can tip in some financial help - sometimes up to six figures," she added.
She said first home buyers with parental help aren't just getting into the property market earlier, they are also getting in "with more savings, bigger budgets, and a huge head start."
The report reveals first home buyers who receive financial support from their parents had 41 per cent more money left over in savings after buying their first home, compared to those who didn't receive any money from their parents.
The research also found that for buyers without family support, 40 per cent took five years or more to save a deposit.
In comparison, among buyers who received assistance, just 29 per cent took five years or more to save for a house.
The other top strategies young Australians use to save for their first home include living at home with their parents (21 per cent of first home buyers); spending less on dining out (20 per cent); and taking on a second job (17 per cent).
Meanwhile, the number of first home buyers who said they simply saved slowly over a long period of time fell from 23 per cent in 2022 to 17 per cent.
While increasing numbers of parents are supporting their children to buy their first home,
Megginson warned that too much generosity from parents' could hurt their own standard of living in retirement.
"Supporting your kids is part and parcel of being a parent, but you need to do it in a way that's sustainable for everyone," she said.
"I've heard of parents who end up working longer than they planned, delaying retirement or leaving themselves financially short once they retire, because they were too generous when giving their kids a financial leg-up," she warned.
The report also found that the percentage of first home buyers who bought out of a worry that property prices would soon become too expensive has increased from 31 per cent in 2022 to 38 per cent in 2025.
Meanwhile, 60 per cent of first home buyers say recent interest rate cuts influenced their decision to buy now.
However, the survey also revealed that nearly two in three, or 65 per cent of first home buyers, spend or expect to spend 30 per cent or more of their income on mortgage repayments, placing them in mortgage stress.
