Bank of Mum and Dad: The five-figure first home buyer deposit
But which state's parents plan on giving the most?
Australian parents are planning to give their children $33,278 on average to put towards a first home deposit, according to Finder's new Parenting Report.
That's about a third of the average first home buyer deposit ($96,274) based on the average first home buyer loan of $481,368 in March 2023.
Which state has the most generous parents on average?
- Victoria: $52,716
- South Australia: $44,656
- New South Wales: $40,191
- Queensland: $36,497
- Western Australia: $31,076
However, not everyone is ready to splash out. 51% of parents say they would give $1,000 or less, which could lead to more "haves" and "have nots" in the Australian property market.
What can I do if I don't have access to the Bank of Mum and Dad?
Here's 3 schemes to consider if you're looking for help to buy a property:
1. First Home Owner's Grant (FHOG)
First home owners grants are a lump sum payment offered by state and territory governments. They're designed with 2 purposes in mind: to help first-timers buy a home and to stimulate the construction of more properties.
You must be buying a new home (or off the plan, or substantially renovated) to qualify for a grant. To get access to these funds, you'll have to buy a home valued below a specific cap.
2. First Home Loan Deposit Scheme (FHLDS)
This scheme allows you to buy a home with a deposit of less than 20% without having to pay lenders mortgage insurance (LMI).
If you qualify for this scheme, you'll be able to purchase your home with a deposit as low as 5% and you'll pay no LMI. Instead, the government guarantees the difference between your home loan deposit (say 5%) and the 20% deposit the bank would prefer you hand over.
3. Stamp duty discounts
Most state governments offer first-time home owners a discount or even a 100% exemption as a way to help make buying a home more affordable.
Every state and territory has a different fee structure and criteria, with some states offering discounts or exemptions worth 100% of the amount owing.
Start your journey of buying your first home with Finder's guide for first home buyers.
"Recent property price hikes combined with interest rate rises have made it extremely tough for young buyers to save a sufficient deposit let alone qualify for a home loan.
"Buying a home also comes with new responsibilities such as managing hefty council rates and strata fees, paying for ongoing repairs and managing your money.
