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Bank of Mum and Dad statistics 2023

Parents give their kids an average of $33K for a house deposit.

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By

Susannah Binsted

Edited by

Jason Loewenthal

Updated

Fact checked

Quick summary

  • The "bank of mum and dad" has become a topic of conversation with house prices rapidly rising.
  • 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.

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