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

Apartments for sale Australia

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.

Low deposit home loan deals

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Last updated 10 August 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $4,243
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $3,994
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $4,243
    Go to site
    • $3,000 cashback when refinancing $700k+ (T&Cs apply)
    • Unlimited free redraw and extra repayments
    • No account-keeping or monthly fees
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $3,905
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $3,994
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.58 % p.a.
    Initial monthly repayment
    $4,106
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • Interest only
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.79 % p.a.
    Initial monthly repayment
    $4,197
    Go to site
    • 100% offset account
    • Access unlimited free redraw on extra repayments
    • No monthly account keeping fees
  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 5-20% deposit
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $4,220
    Go to site
    • Easy online application
    • Choose Principal and Interest or Interest Only options for your bcu OMG loan
    • With redraw facility available and easy pre-approval valid for 3 months, we will make it happen. Apply online now
  • Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $4,243
    Go to site
    • $3,000 cashback when refinancing $700k+ (T&Cs apply)
    • Unlimited free redraw and extra repayments
    • No account-keeping or monthly fees
  • Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $4,243
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Economy Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    • Cashback
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $4,243
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • Unlimited free redraw and extra repayments
    • Pay weekly, fortnightly or monthly
  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 5-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    5.92 % p.a.
    Initial monthly repayment
    $4,266
    Go to site
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months
  • Clear Path Variable Rate Special Offer Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Offset available
    • Redraw available
    • Cashback
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $4,266
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • 100% mortgage offset account to reduce interest
    • Can apply with just 5% deposit
  • Loaded Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    6.18 % p.a.
    Initial monthly repayment
    $4,266
    Go to site
    • Earn Virgin Money Points at settlement and every month
    • 100% interest offset
    • Weekly, fortnightly or monthly repayment flexibility
  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Redraw available
    Interest rate
    6.39 % p.a.
    Variable
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $4,499
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options
  • Offset Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10-20% deposit
    • Offset available
    • Redraw available
    Interest rate
    7.24 % p.a.
    Variable
    Comparison rate
    7.27 % p.a.
    Initial monthly repayment
    $4,907
    Go to site
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options
Showing 13 results from 409 home loans. Use the filters to see more

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.