$74k parental gift not enough to escape brutal housing affordability crisis, reveals new report

The ‘Bank of Mum and Dad’ is handing out record amounts to help kids buy homes, but Mozo’s latest data reveals even a massive $74,000 gift isn't enough. Aspiring homeowners still need an annual income nearing $150,000 to manage a mortgage on an average-priced property, according to the Mozo Bank of Mum and Dad Report 2025.

The report highlights a dramatic shift, with a staggering 75% of parents now providing financial help as an outright gift, expecting nothing in return – more than double the rate in 2021.

This surge in generosity, averaging $74,040 for deposits, comes as house prices have soared over 51% in five years, pushing the average dwelling price towards $977,000 and a typical 20% deposit close to $195,000.

"The Bank of Mum and Dad has officially evolved into the Gift of Mum and Dad," says Mozo finance expert Rachel Wastell. "In 2021, a third of parents helping kids onto the property ladder didn't expect repayment, now it's three-quarters. That's not a bank, or a loan… that's a legacy."   

Affordability gap remains despite gifts

While this parental legacy is crucial, Mozo's analysis paints a sobering picture of ongoing costs. Even after securing a house deposit, potentially with mum and dad's help, servicing a home loan remains a major hurdle.

Buying the average Australian home requires managing monthly mortgage repayments of around $4,898, based on average rates. Crucially, when factoring in the banks' mandatory 3% serviceability buffer, lenders need proof buyers can afford repayments exceeding $6,500 per month.

This means you’ll need a minimum annual pre-tax income of $149,244, according to Mozo’s calculations. This figure effectively locks out many single-income earners and even dual-income households earning below this threshold, despite potentially receiving significant parental help.

Parents feeling the pinch

The financial strain isn't just on the buyers. The report found parents are making significant sacrifices, with more than half (54%) dipping into savings, nearly one third (29%) using their current income, and around one fifth (19%) cutting back their own expenses to fund these gifts.

Mozo’s report underscores that while parental assistance is becoming increasingly vital for first-home buyers navigating the challenging property market, it's not a golden ticket. High property prices and stringent lending criteria mean the dream of homeownership remains incredibly tough, demanding substantial incomes even after receiving tens of thousands in gifted help.

If you're ready to take the first step towards homeownership – whether you’ve got a family boost or you're going it alone – comparing options is a smart move. Below, you’ll find a selection of competitive low deposit home loans to help you find a deal that suits your budget and goals.

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