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Quick summary
Parents give their kids an average of $33,278 to help with a house deposit according to 2023 data from Finder's CST.
More than 60% of first home buyers in Australia receive some form of financial assistance from their parents to buy their first home.
The Bank of Mum and Dad is estimated to be collectively worth about $35 billion.
Over 50% of kids who borrow money from their parents are under financial stress, compared with about 28% of property buyers who relied on their own resources.
Around 7% of parents help their children pay their mortgage and 7% support by being a guarantor on their home loans. This is up from 4% and 5% from 2019.
The Bank of Mum and Dad and house deposits
Parents give their kids an average of $33,278 to help with a house deposit according to 2023 data from Finder’s CST.
Victorian parents fork out the most, gifting $52,716 on average. This is followed by South Australian parents ($44,656), NSW parents ($40,191), Queenslanders ($36,497) and Western Australians ($31,076).
In 2020, just 7% of parents said they had supported their kids with a house deposit with this number jumping to 17% in 2021.
Parents are much more likely to support their children buying their first home. More than 60% of first home buyers in Australia receive some form of financial assistance from their parents to buy their first home.
NSW parents are the most likely to help their children financially according to 2021 data (61%), followed by VIC (55%), QLD (45%) and WA (39%).
The Bank of Mum and Dad is estimated to be collectively worth about $35 billion.
Over 50% of kids who borrow money from their parents are under financial stress, compared with about 28% of property buyers who relied on their own resources.
How much do parents help their kids financially?
Over half of Australian parents (52%) help their children financially according to 2021 data. This is up from 44% in 2020 and reasonably consistent with levels seen in 2019 (54%).
Around 7% of parents help their children pay their mortgage and 7% support by being a guarantor on their home loans. This is up from 4% and 5% from 2019.
Home ownership among young adults
Home ownership among young Australians has been in decline over the past 2 decades, according to a March 2023 report by AHURI.
Saving for a deposit is a major challenge for young adults due to skyrocketing house prices and insecurity of employment and incomes.
2 in 5 (40%) of those aged 25–34 intend to rely on family support to buy a house.
Homeowners are more likely to be in full-time employment (72%) compared to renters (41%).
54% of those aged 25–34 in Sydney plan to purchase a property in the next 5 years to live in. An additional 19% said they intended to purchase an investment property.
85% of non-homeowners hope to buy their own property, but just 24% think they will ever have the financial resources to do so.
Among people earning less than $104,000 a year, 70% believe the only way they will be able to afford a house is if they receive a large inheritance.
Even among those earning over $104,000, more than half (53%) say they will need an inheritance to buy a home.
Less than 24% of this group say they can get into the property market without assistance from the Bank of Mum and Dad, with the rest unsure.
Finder's CST
AHURI Final Report No. 395 Pathways to home ownership in an age of uncertainty
Susannah Binsted is the international PR manager at Finder. Susannah has a Bachelor of Communication and a Bachelor of International Studies from the University of Technology Sydney.
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