Gen Yers turning to the “Bank of Mum and Dad” to make home ownership dreams a reality

The first of a series of reports entitled Future Leaders Index 2015 has found that prohibitive property prices in Australia are causing more Gen Yers to turn to the “Bank of Mum and Dad” to fund their property dreams.
Of those 18-29 year olds surveyed, 38% of those who managed to buy a home, did so with financial help or a guarantor, while 28% of those with an investment property received help.
The report, compiled by accountancy firm BDO and The Co-op, is the first of a series of White Papers to be launched in 2015 that brings to light the current spending, saving and debt habits of Gen Y in Australia.
Director of the City Futures Research Centre, Professor Bill Randolf told Domain.com.au that Gen Y’s perceptions about property ownership are influenced by their parents and Australian society at large.
“That’s the message they’ve been brought up with. Presumably their parents got into the property market and done reasonably well in it, and they presume that’s the purpose of their lives,” he said.
The report also found 92% of Sydney dwellers aged 18-29 think property prices make home ownership no longer achievable for their generation, however 78% perceived taking on a mortgage burden is more preferable than renting.
“The rental market is not a long-term solution, although a large proportion of Gen Yers won’t get out,” said Randolf.
This report comes as News.com.au found a “great wall of unaffordability” in Sydney’s real estate with first-home buyers being “locked out” of suburbs within 50km of the Sydney CBD with the media house price exceeding $900,000.
Home loan comparisons on Mozo - last updated 13 August 2022
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Variable Home Loan 70
interest rate
comparison rate
Initial monthly repayment3.10% p.a. variable3.12% p.a.Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
CompareCompareVariable Home Loan 70
Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.
- interest rate
- 3.10% p.a. variable
- comparison rate
- 3.12% p.a.
- interest rate
- 3.10% p.a. variable
- comparison rate
- 3.12% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Variable Home Loan 70
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Unloan Variable
Owner Occupier, Refinance Only
interest rate
comparison rate
Initial monthly repayment3.14% p.a. variable3.06% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 3.14% p.a. variable
- comparison rate
- 3.06% p.a.
- interest rate
- 3.14% p.a. variable
- comparison rate
- 3.06% p.a.
- Upfront fees
- $0
- Ongoing fees
- -
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Unloan Variable
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Featured Product
Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment3.64% p.a. variable3.66% p.a.Low variable rate No annual fees to pay. Unlimited additional repayments. Free redraw facility available. Fast digital application. 40% deposit required. Winner of Mozo Experts Choice Australia's Best Essential Bank 2022^.
CompareCompareNeat Home Loan
Low variable rate No annual fees to pay. Unlimited additional repayments. Free redraw facility available. Fast digital application. 40% deposit required. Winner of Mozo Experts Choice Australia's Best Essential Bank 2022^.
- interest rate
- 3.64% p.a. variable
- comparison rate
- 3.66% p.a.
- interest rate
- 3.64% p.a. variable
- comparison rate
- 3.66% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $80,000
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
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- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Neat Home Loan
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PAYG Home Loan
Owner Occupier, Principal & Interest, LVR<80%
interest rate
comparison rate
Initial monthly repayment3.29% p.a. variable3.33% p.a.Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.
CompareComparePAYG Home Loan
Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.
- interest rate
- 3.29% p.a. variable
- comparison rate
- 3.33% p.a.
- interest rate
- 3.29% p.a. variable
- comparison rate
- 3.33% p.a.
- Upfront fees
- $840
- Ongoing fees
- $0.00
- Discharge Fee
- $500.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $250,000
- maximum borrowing amount
- $3,000,000
- type of mortgage
- Variable
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- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the PAYG Home Loan
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Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment3.79% p.a. variable3.79% p.a.Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
CompareCompareCelebrate Variable Home Loan
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.
- interest rate
- 3.79% p.a. variable
- comparison rate
- 3.79% p.a.
- interest rate
- 3.79% p.a. variable
- comparison rate
- 3.79% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
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- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Celebrate Variable Home Loan
* 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, loan amount and term entered. 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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