If you thought the ‘Bank of Mum and Dad’ was just a cheeky nickname for parents helping their kids buy a home, think again.
In 2025, it’s become one of Australia’s biggest property powerhouses—and it’s changing the way families think about money, inheritance, and the great Australian dream of homeownership.
But here’s the twist: more parents than ever are handing over tens of thousands of dollars to their adult children, and they don’t want a cent back. That’s right—the Bank of Mum and Dad has turned into the Gift of Mum and Dad, and it’s rewriting the rules of family finance.
Let’s dive into what’s driving this seismic shift, the risks and rewards for both generations, and what every Australian family should know before signing over their savings.
According to Mozo’s latest Bank of Mum and Dad Report, a whopping 75% of parents helping their kids onto the property ladder in 2025 don’t expect to be repaid. That’s more than double the number from just four years ago, when only a third of parents were happy to give without strings attached.
Why the sudden surge in generosity? The answer is simple: the property market has run away from first time home buyers. In just five years, the average Australian house price has soared by 51%—from $646,000 in 2019 to nearly $977,000 at the end of 2024. That means a 20% deposit now costs an eye-watering $195,000, up by more than $66,000 in just half a decade.
For many young Australians, the dream of homeownership is slipping out of reach—unless Mum and Dad step in.
On average, parents are now handing over $74,040 to help their children with a home deposit. That’s not just a little boost—it’s a life-changing sum that can make or break a first home purchase.
But while the numbers are big, the emotional stakes are even bigger. One in three parents admit they feel pressure to say ‘yes’ when their kids ask for help, and a similar number say they’d give their children ‘whatever they want’ to get them into a home.
It’s heartwarming to see parents helping their kids, but experts warn there’s a dark side to this generosity. Some parents are dipping into their retirement savings, delaying their own plans, or even taking out high-interest loans and credit cards to fund their children’s deposits. In fact, 3% of parents are now borrowing money themselves to help out—a risky move that could put their own financial security in jeopardy.
Rachel Wastell, Mozo’s personal finance expert, cautions, ‘It’s one thing to help your kids, but using debt to do it is dangerous. Parents could be trading short-term generosity for long-term financial concerns.’
Before you sign over your savings, it’s crucial to make sure you’re not putting your own future at risk. Remember, you can’t pour from an empty cup—and your retirement needs to come first.
Interestingly, while parents are more willing to give cash, they’re less willing to downsize their homes to do it. In 2025, 77% of parents said they wouldn’t consider selling the family home to help their kids, up from 55% in 2021. Only 3% have actually downsized, compared to 14% four years ago.
With property prices at record highs, many parents are ‘equity rich’—but they’re drawing the line at giving up their biggest asset. After all, the family home is often the cornerstone of retirement security.
Gifting money to one child can create tension, especially if there are siblings involved. While 83% of parents say they try to support all their children equally, nearly 1 in 10 admit they’ve reconsidered helping others after supporting one, and 3% regret giving more to a single child.
It’s a tricky balancing act—and one that can have long-term consequences for family harmony and inheritance.
Let’s not sugarcoat it: buying a home in 2025 is tough, especially for single-income buyers. To afford the average home at $976,800, with a typical home loan rate of 6.42%, you’d need to manage repayments of nearly $4,900 a month. And with the banks’ 3% serviceability buffer, you’d have to prove you could handle repayments of over $6,500 a month—requiring an annual income of at least $149,000.
For many, that’s simply out of reach. That’s why parental help is more important than ever—but it’s not a silver bullet.
A generous gift can get you over the deposit hurdle, but it won’t protect you from high interest rates. Mozo’s analysis shows that sticking with an average variable rate could cost you over $300 a month more than choosing a low-cost lender. In NSW, that ‘dead money’ could be over $400 a month.
Over a year, that’s nearly $4,000 down the drain—money that could be better spent on your new home or even saved for a rainy day.
If you’re stepping onto the property ladder for the first time, a few smart moves can make all the difference.
Start by comparing home loan rates—don’t just settle for the first offer, as better deals could save you thousands. Explore government schemes and grants tailored for first time buyers, which can provide valuable financial support. Think about alternative strategies like rentvesting, where you purchase in a more affordable area while renting where you prefer to live.
Expanding your search to regional locations may also reveal more budget-friendly options. Before accepting or giving a large financial gift, be sure to get independent financial advice to protect both your future and your finances.
The Bank of Mum and Dad is no longer just a lender—it’s become a legacy. For many families, helping the next generation onto the property ladder is a way to pass on wealth, values, and opportunity. But with great generosity comes great responsibility. Before you give (or receive) a life-changing gift, make sure you’ve thought through the financial, emotional, and family implications.
What are your thoughts on the growing role of the ‘Bank of Mum and Dad’? Have you helped your kids buy a home, or are you thinking about it? What advice would you give other parents or first-time home buyers? Share your stories and tips in the comments below.
Also read: ‘Bank of Mum and Dad’ increasingly used for mortgage repayments, living expenses
This is the biggest slippery slope for parents or even grandparents.
The whole idea of an entitlement to assets that others worked a lifetime for causes a visceral reaction in me.
I have been told by a parent under pressure to help financially ‘My daughter doesn’t ask me for anything (by way of monetary help in life). Of course she doesn’t, that wouldn’t be savvy. All she needs to do is hint at one difficulty or another, especially if there are grandchildren involved and she knows you will put your hand in your pocket. It is of course entirely their decision what they choose to do in response to those not so subtle hints, but it is a growing social expectation that ALL mum and dads should do the same, otherwise they are perceived as being mean. This pressure to hand over large sums of money to adult children is now the norm. Thank goodness there are some younger adults who save a deposit by doing without ‘wants’, of which the list keeps growing, which includes having children before they can afford to care for them. Setting priorities in life seems to have gone out the window in favour of wanting it all and wanting it NOW. Any wonder we live in a materialistic world, us Boomers laid a sold foundation for it, because we didn’t have a lot of possessions. We have simply created a model that has swung to the other extreme end of the spectrum.