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 ‘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.
The RBA recently made its first cut in four years and many banks followed suit. But while a lower cash rate is good news for borrowers and homeowners, the RBA board was quick to point out there’s no certainty we’ll see another drop anytime soon. So if you’re looking to lock in a great home loan deal, now might be the time to consider a fixed rate as many challenger banks have highly competitive short-term deals available.
Macquarie has cut another 20 basis points off its fixed rate home loans, vastly undercutting what’s on offer at the Big Four banks.
The Westpac Group – comprising St.George, Bank of Melbourne, BankSA and Westpac – has lowered advertised rates on package variable home loans for new customers.
Housing affordability is front and centre this federal election, with both major parties pitching policies to help first home buyers break into the market. But while the goal is shared, Labor and the Coalition are taking very different routes to get there.
A $900,000 home will get you pretty far in most places in Australia, though the value varies significantly depending on location.
The federal opposition has revealed that, if elected, it will work with Australia’s prudential regulator to relax the mortgage serviceability buffer, in an attempt to provide first homebuyers easier access to loans. This move might also give current mortgage holders greater capacity to negotiate new loan terms and refinance.
Home loan repayments are likely your biggest regular expense, so every cent that you can save on your home loan is more money for you. If you are looking to purchase property this year, or refinance an existing home loan, you’ll want to be in the know where you can get low home loan rates and secure a great value deal.