One in five first-home buyers now relies on parents to get onto the property ladder
Parental support is playing an increasingly important role in helping first-home buyers enter the Australian property market, with new research revealing a growing dependence on both direct financial contributions and guarantor-backed loans.
Finder’s "First Home Buyer Report 2025," based on a national survey of 1,006 first-home buyers, found that 17% relied on help from their parents to save a deposit – up from 11% in 2022. That figure translates to nearly 20,000 buyers each year receiving financial assistance from family.
Sarah Megginson (pictured), personal finance expert at Finder, said parental contributions have become a crucial factor in getting onto the property ladder. “The bank of mum and dad has become one of the biggest unofficial lenders in the country,” she said.
“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.”
Beyond direct financial gifts, more first-time buyers are also turning to guarantor loans to bridge the affordability gap – particularly in New South Wales. According to Loan Market, the proportion of first-home buyer loan pre-approvals in NSW involving parental guarantees has more than doubled over the past year, rising from 5% to 11%. The brokerage said this trend reflects mounting deposit pressures and high property prices in key metropolitan areas.
Finder’s report further highlights the long-term benefits of family support. First-home buyers who received financial help from parents had, on average, 41% more savings remaining after purchasing their home, compared to those who bought without assistance – giving them a stronger financial cushion for future costs.
The Finder report also found a significant difference in the time it takes to save for a deposit. Among buyers without parental support, 40% took five years or more to save, compared to 29% of those who received help.
However, Megginson cautioned that parents should weigh their own financial security before stepping in to help. “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.”
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