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This year, 17 per cent of first home buyers were given money from their parents to purchase property, up from 11 per cent in 2022.
As reported in Finder’s First Home Buyer Report 2025, volatility and high prices in the domestic property market are helping contribute to this trend.
Those who are leaning on their parents are able to enter the property market two years earlier than those who don’t, said Finder.
For borrowers who received support from parents, 29 per cent took five years or more to save for a deposit. This jumped to 40 per cent of those without support.
It also improved financial security, with those accessing support having 41 per cent more savings left after buying a property.
“The bank of mum and dad has become one of the biggest unofficial lenders in the country,” said Sarah Megginson, personal finance expert at Finder.
“For many young Australians, homeownership feels like a dream that won’t be realised, unless you’ve got parents who can tip in some financial help – sometimes up to six figures.
“First home buyers with parental help aren’t just getting in earlier – they’re getting in stronger, with more savings, bigger budgets, and a huge head start.”
The Bank of Mum and Dad is still a privilege that only some families can afford. There are plenty of families without the means to fork out tens of thousands of dollars to help with a deposit.
Further, Megginson said there are those who are unsustainably supporting their children and leaving themselves worse off.
“Supporting your kids is part and parcel of being a parent, but you need to do it in a way that’s sustainable for everyone,” she said.
“The worst-case scenario is if mum and dad leave themselves vulnerable in the process of trying to help their kids. I’ve heard of parents who end up working longer than they planned, delaying retirement or leaving themselves financially short once they retire, because they were too generous when giving their kids a financial leg-up.”
For those who are able to assist their children, the cost savings of entering the property market two years earlier were highlighted for each city:
- Sydney ($140,000)
- Melbourne (-$38,000)
- Brisbane ($160,000)
- Adelaide ($165,000)
- Perth ($220,000)
- Hobart (-$7,500)
- Canberra (-$20,000)
- Darwin (-$34,000)
Some of the top strategies for saving for a deposit for a first home were:
- Living with parents (21 per cent).
- Spend less on eating and drinking out (20 per cent).
- Saved slowly over a long period (17 per cent).
- Took on a second job (17 per cent).
- Received money from parents (17 per cent).
Hanging over the heads of first home buyers is FOMO. In fact, 38 per cent bought a property out of fear that property prices would soon become too expensive.
Meanwhile, 65 per cent of first home buyers are or expect to experience mortgage stress.
“The dominant motivator, as this report has shown, is no longer just the aspiration to own a home – it is the fear of missing out. FOMO, fuelled by rising prices and social pressure, has overtaken traditional financial planning for many buyers,” said Finder’s head of consumer research, Graham Cooke.
Buying a property is just the beginning. Mortgage repayments follow and can hurt those who enter into loans without considering the finances involved.
While 55 per cent said they do not regret purchasing their property, there were plenty who do.
Around 26 per cent believe they paid too much, 11 per cent didn’t save enough and bought with a small deposit, and 10 per cent didn’t buy in a good area.
The proportion of suburbs where the average Australian can afford a mortgage on the median house has fallen from 57 per cent in 2017 to just 16 per cent in 2025.
There are other options that can ensure borrowers aren’t left hanging following a purchase.
Purchasing the property with someone else is a viable option, with Finder saying that solo buyers are dropping, with the number of single first home buyers falling from 45 per cent in 2021 to 39 per cent in 2025.
‘Rentvesting’ may also be a more suitable option with 24 per cent of Aussies looking interstate when purchasing their first property.
With policy support on the rise and interest rates finally coming down, first home buyers can prepare for some slightly easier conditions.
“In a year marked by economic strain, housing insecurity and rising anxiety, this glimmer of monetary easing offers a much-needed note of optimism. First home buyers have shown remarkable resilience – now, with a bit of policy support and continued rate relief, their dreams of homeownership may not just be possible, but sustainable,” said Cooke.
[Related: First home buyers capitalising on reduced interest rates]
