SYDNEY, AAP – One in three first home buyers in Australia are leaning on their mums and dads to break into the property market, a new poll shows.
The survey of 1028 first home buyers, released on Thursday, found 32 per cent were receiving financial backing from their parents either in the form of a deposit, loan or full purchase price.
With 3779 Australian adults relying on their parents each month, the report said the so-called “Bank of Mum and Dad” is the nation’s ninth-largest mortgage lender after handing out an estimated $29 billion in the past year alone.
About one in four (23 per cent) of those surveyed got help from their parents for the deposit or loan repayments, while 12 per cent reported having assistance with the full purchase price.
Millennials (33 per cent) were the most likely generation to approach their parents for help, and more men (36 per cent) than women (27 per cent) received parental contributions.
Home loans expert Sarah Megginson said saving for a deposit remains a struggle for budding first home buyers, particularly those saddled with rent payments.
“House prices in Australia increased by 2.8 per cent in March alone, the fastest rate of appreciation since October 1988, so it’s not surprising to see this many parents helping their children get their foot in the door,” she said.
It is important young people looking to their parents for a leg up understand house costs go beyond the initial deposit, Ms Megginson added.
“You can’t always rely on mum and dad to come to the rescue,” she said.
“I’d encourage all parents to set firm financial boundaries with their adult kids, so they know when to help themselves.”
The First Home Buyers Report 2021 was researched by Finder, an independently-owned comparison website headquartered in Sydney.