No-strings: The ‘Bank of Mum and Dad’ now gifting an average $74k for home deposits

The ‘Bank of Mum and Dad’, long considered a crucial lender for aspiring Australian homeowners, has undergone a fundamental transformation, evolving into the ‘Gift of Mum and Dad’, according to Mozo’s latest report findings. 

Faced with soaring property prices and deposit hurdles, parents are increasingly providing substantial financial help with no expectation of repayment.

Mozo's ‘Bank of Mum and Dad’ Report 2025 reveals a dramatic shift in parental support: a staggering 75% of parents providing financial assistance for property purchases in 2025 do not expect the money back. This figure has more than doubled since Mozo's 2021 survey, when only 33% offered help as an outright gift or non-repayable contribution.

The average amount gifted specifically for a home deposit has also climbed, now sitting at $74,040, up from approximately $70,000 in 2021.

"The Bank of Mum and Dad has officially evolved into the Gift of Mum and Dad," says Rachel Wastell, Mozo's finance expert. "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."

This surge in no-strings-attached generosity comes as Australian house prices have skyrocketed by over 51% in five years. For first homebuyers, this means the required 20% deposit has surged by an average of $66,160 over the same period, pushing the dream of homeownership further out of reach without significant help.

Savings sacrifice sets kids up for the future

The report highlights the sacrifices parents are making to provide this support. The most common source of funds is existing savings, with 54% dipping into their nest eggs. Nearly a third (29%) are using their current income, while around one fifth (19%) are actively cutting back on their own expenses to facilitate their children's property ambitions.

Interestingly, while cash gifts are increasing, parents are drawing a line elsewhere. The willingness to downsize the family home to free up capital has decreased significantly. In 2025, 76% of parents said they wouldn't consider downsizing to help financially, a sharp rise from 55% in 2021. Actually downsizing for this purpose has also become rarer (3% in 2025 vs. 14% in 2021).

"With property prices skyrocketing, it could be that many Aussie parents are 'equity rich' and have the confidence to gift without changing their lifestyle," Wastell suggests. "Aussie parents are clearly generous, but in 2025 they're drawing the line at giving up the family home."

While the vast majority of parental help comes from savings or income, the report flags a concerning trend: 3% of parents admitted to using higher-risk options, like credit cards or personal loans, to fund their contributions.

The findings show that getting into the Aussie housing market is becoming harder without help from the ‘Bank of Mum and Dad’, reshaping how money flows between generations. With affordability getting tougher, the average $74,000 gift isn’t just a generous gesture – it’s often a crucial lifeline helping younger buyers close the deposit gap.

You can discover more about parental contributions and first-home buyer challenges by reading Mozo’s ‘Bank of Mum and Dad’ Report 2025.