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For years, the so-called ‘Bank of Mum and Dad’ has been one of Australia's largest financial institutions, helping young homebuyers break into the property market.
But Mozo’s latest survey data suggests that this support has evolved beyond traditional lending, with most parents now giving financial assistance without expecting repayment.
In 2025, the ‘Bank of Mum and Dad’ is increasingly looking more like the ‘Gift of Mum and Dad’.
Since March 2019, Australian house prices have skyrocketed by over 51%, rising from $646,000 to $976,800 by the end of 2024. For first homebuyers, that surge means that a 20% home loan deposit (the amount required to avoid paying LMI) has jumped from $129,200 to $195,360 - an increase of $66,160 - in just five years.
For many first homebuyers, saving a deposit is now the biggest financial hurdle and so parents are stepping up, offering financial support to help children achieve this monumental savings task.
With property prices rising, parents are digging deeper into their own finances to help their children buy a home.
In 2025, Mozo found nearly half (49%) of parents who provided financial assistance to their children said they did not expect to be repaid, and more than a quarter (26%) explicitly stated that the money was a gift.
That means three-quarters of parents (75%) are offering their kids financial support with no expectation of seeing their money returned.
When it comes to lending money to adult children, what do parents expect in return for their generosity and what factors do they consider?
While the concept of parental financial assistance isn’t new, the increasing willingness of parents to provide money as a gift rather than a loan is, and signals a growing generational divide.
In fact, more than half (55%) of parents in 2025 said they never received similar financial help from their own families when they were younger.
In 2025, parents are stepping back from higher risk financial support like going guarantor on their children’s home loans (down from 15% in 2021 to 8% in 2025) or co-buying property (down from 10% in 2021 to 2% in 2025).
Instead, they’re offering safer forms of financial support. 23% provide accomodation rent free, while their children save for a deposit, up from 15% in 2021 and 20% are contributing to the home loan deposit. This is slightly less than 2021, but still the second most popular way parents are helping out financially. Buying a property on behalf of children is no longer a popular option, with just 3% paying for the purchase compared to 11% in 2021.
The average amount gifted for a home deposit has increased from $69,907 in 2021 to $74,040 in 2025 – an increase of more than $4,000.
Additionally, parents are providing indirect financial support by allowing their children to live at home rent-free while saving for a deposit. In 2025, nearly a quarter (23%) of parents have done so, with the average cost to them (including expenses like food, power, and internet) hovering around $6,200.
Despite this growing financial commitment, most parents are willing to make sacrifices to assist their children.
More than half (54%) have dipped into their savings to provide financial aid, while nearly one third (29%) used their income. One fifth (19%) cut back on their expenses to help fund their child's homeownership aspirations.
The shift from lending to gifting signals changing attitudes toward financial support between generations. While more parents are giving money without expecting repayment, they are still conscious of fairness – with the vast majority (83%) saying they ensure all their children receive equal support, regardless of whether they live nearby, interstate, or even overseas.
Around one in three parents (29%) weigh up how helping one child might affect their ability to support others, but most (66%) believe that over time, the support balances out across their children.
Interestingly, while financial support from parents has increased, fewer parents are willing to make extreme sacrifices to fund their children’s homeownership goals.
Three-quarters (77%) of parents said they would not consider downsizing to help their children financially, a significant increase from 55% in 2021.
Even with help from Mum and Dad for a deposit, picking the wrong home loan could cost you thousands of dollars.
Switching to a low rate home loan, like the winners of the Mozo Experts Choice Awards 2025, could help buyers cut repayments by over $300 a month - or $4,000 a year.
While it’s tough enough for a couple, those applying for a mortgage on a single-income are really struggling to be able to purchase a home.
Mozo’s analysis shows that in order to afford the ABS mean residential dwelling price of $976,800, at an average home loan rate of 6.42%p.a., buyers need to manage monthly repayments of $4,898.
When you factor in the 3% serviceability buffer mandated by APRA this pushes the repayments buyers must prove they can afford to over $6,500 per month.
Taking this scenario, the data shows a solo applicant would require a minimum annual income of $149,244 to be able to afford the average home, which effectively prices out many single income earners, even those earning well above the national average.
| Location | 20% Home Loan Deposit Amount | Monthly Repayment (6.42% p.a.)* | Monthly Repayment with Buffer (+3%)* | Annual Income (minimum, pre tax)* |
|---|---|---|---|---|
|
Australia |
$195,360 |
$4,898 |
$6,525 |
$149,244 |
| NSW |
$242,820 |
$6,088 |
$8,110 |
$178,825 |
| VIC |
$174,840 |
$4,384 |
$5,840 |
$133,714 |
| QLD |
$184,720 |
$4,631 |
$6,170 |
$143,665 |
| SA |
$166,940 |
$4,186 |
$5,576 |
$130,130 |
| WA |
$170,020 |
$4,263 |
$5,679 |
$139,727 |
| TAS |
$129,040 |
$3,235 |
$4,310 |
$107,177 |
| NT |
$100,180 |
$2,512 |
$3,346 |
$102,711 |
| ACT |
$191,360 |
$4,798 |
$6,392 |
$148,059 |
*Based on repayments for a 30 year loan at a rate of 6.42% p.a. (average variable rate in the Mozo database for an Owner Occupier paying principal and interest, with a $500k loan, 80% LVR, 23 April 2025) and a serviceability buffer of 3% p.a. plus per person household spending (ABS, Census 2021, Monthly Household Spending Indicator, January 2025). Minimum income reflects gross income at 2024-25 resident tax rates with no Medicare levy paid.
Despite rising living costs and an increasingly expensive property market, most parents (68%) say they don’t feel pressured to help their children financially. This suggests that their support is largely voluntary and that they are happy to assist their children in securing a home.
With rising barriers to homeownership for young Australians, the 'Gift of Mum and Dad' is becoming an increasingly essential component of the home-buying journey.
Whether this trend continues in the long term is uncertain, but for now, parents are playing a major role in helping the next generation climb onto the property ladder – without expecting anything in return.
Not everyone has access to the 'Bank of Mum and Dad' to get a foot on the property ladder, but that doesn’t mean you’re out of options.
Mozo’s range of must-read guides on all aspects of home buying, selling, renovating and general mortgage and home loan essentials can help you become an expert on all aspects of property finance one section at a time.
This research report was compiled using a nationally representative survey of 1,019 Australian parents 18 years and over with adult children, with information collected via Pure Profile in January 2025.
This follows on from a nationally representative survey of 1007 Australians aged 18 years and above Mozo conducted via Researchify between June and July 2021. In the 2025 survey, Mozo asked survey respondents a mix of identical questions asked in the 2021 survey - to determine the evolution of the 'Bank of Mum and Dad' - and new questions that were added to contextualise the findings for 2025. Read the 2021 'Bank of Mum and Dad' Report.
Where percentages in the report total greater than 100%, survey respondents were able to select more than one answer, and in some cases numbers and percentages have been rounded.
The estimated potential savings calculations included in this report were conducted using rates collected as part of the Mozo Experts Choice Awards judging process for Home Loans and the ABS Total Value of Dwelling March 2025 release.
