The ‘bank of mum and dad’: 1 in 5 first home buyers tap the family bank
The 'bank of mum and dad' is turning the Aussie dream of home ownership into a reality for thousands of young buyers.
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Finder's First Home Buyer Report 2025 – based on a survey of 1,006 first home buyers in Australia – reveals almost 1 in 5 (17%) first home buyers relied on the financial help of mum and dad to save their deposit, up from just 11% in 2022.
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That's almost 20,000 first home buyers a year who are lucky enough to receive financial assistance from their parents.
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Sarah Megginson, personal finance expert at Finder and mum-of-three, said millions of Aussies are counting on the bank of mum and dad.
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"The bank of mum and dad has become one of the biggest unofficial lenders in the country.
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"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.
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"First home buyers with parental help aren't just getting in earlier – they're getting in stronger, with more savings, bigger budgets, and a huge head start."
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The report reveals first home buyers who receive financial support from their parents had 41% more money left over in savings after buying their first home – compared to those who don't have parental financial help – to weather unexpected expenses in the future.
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Megginson warned that too much generosity from parents' could hurt their own standard of living in retirement.
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"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. The worst-case scenario is if mum and dad leave themselves vulnerable in the process of trying to help their kids.
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"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."
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Among buyers without family support, 40% took 5 years or more to save a deposit, compared to just 29% of those who received assistance.
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