Share this @internewscast.com

Young Australians are increasingly drawing on the ‘bank of mum and dad’ to get a foot on the property ladder as house prices continue to grow.
But new data suggests parental loans are losing their conditions, almost entirely.
Parents who contributed to their child’s home loan deposit gave on average $74,040, according to financial comparison site Mozo who surveyed 1,019 Australian parents aged 18 or over. However, the number of respondents in this sample who had provided this support was unclear.

As reported by Mozo, this figure was $4,113 higher compared to 2021. Additionally, 75 percent of parents who had contributed to a deposit did not anticipate being reimbursed, an increase from 33 percent during the same timeframe.

While it’s not atypical for parents to offer a financial lifeline, rising house prices are forcing them to dig deeper into their pockets.
National home prices hit a new peak in April, rising 0.2 per cent to reach $805,000, according to property research firm PropTrack’s latest Home Price Index. Home prices in Sydney, Brisbane, Adelaide, Perth and Darwin were all at record highs.
More than half the respondents in Mozo’s reported dipping into savings to provide financial aid.
And about 19 per cent reported cutting back on expenses to help fund their child’s home ownership aspirations.
“We’re seeing some parents delay retirement, dip into savings, or even rely on credit cards and loans to support their children,” said Rachel Wastell, Mozo’s personal finance expert.

“Before offering that helping hand, it’s crucial to make sure you’re not relying on high interest debt and that your own financial future is secure.”

Other research has suggested parents who provide funds for their child’s home loan deposit typically give $100,000 or more.
Investment manager UBS surveyed 1,000 Australian adults in December, asking whether they had received or given money to family members in the past 12 months. Almost 40 percent said yes, and of those, 25 percent reported the money was used for purchasing residential property.
Some 60 per cent of givers said they had transferred $100,000 or more to a family member to support their purchase. Although 80 per cent of those who received money for this purpose said they had been given less than $100,000.
Richard Schellbach, equity strategist at UBS, told The Australian’s The Money Puzzle podcast in January that it was no surprise the bank of mum and dad existed, but said the survey showed “the magnitude and prevalence is possibly stronger than many would have suspected”.

 For the latest from SBS News, and .
Share this @internewscast.com
You May Also Like
Putin 'moving closer to Ukraine peace deal', but can he be trusted

Putin Nears Ukraine Peace Agreement, But Is He Trustworthy?

New intelligence assessed by US and Western officials indicates that Russian President…

2025 Federal Election: Australians Head to the Polls to Elect New Government

By Mikala Theocharous22:29 Opposition leader Peter Dutton also spoke to Weekend Today…
Peter Dutton, Andrew Constance and Nicolle Flint.

The Suburban Areas That Could Propel Peter Dutton to Prime Minister

If Peter Dutton is to become prime minister tonight in the federal…

Chaos on M1: Metal Fragments Damage Hundreds of Vehicle Tires on NSW Motorway

Up to 380 vehicles have had their tyres punctured after tonnes of…
Riot squad called to control chaos outside selective school test

Police Deployed to Manage Disorder at NSW Selective School Exam

More than 2500 students and their parents were engulfed in confusion as…

Best Times for Australians to View the Eta Aquarids Meteor Shower

Key Points The Eta Aquarids meteor shower started on 19 April and…
Women flocked to Romancing The Novel in Paddington last weekend for a Bound To Roam 'book crawl'.

What Was Once ‘Taboo’ Is Now a Thriving Business for Women Like Scarlett

The sky is gloomy with an impending downpour as women flock to…

Flight Centre Braces for $100 Million Impact Amid Decline in U.S. Tourism

Flight Centre, among the largest travel companies worldwide, has signaled it might…
Major emergency after helicopter crashes into beach

Helicopter Crash on Beach Sparks Major Emergency Response

Three people have been rushed to hospital with serious injuries after a…
US Army plans for parade with 6600 soldiers coincide with Trump's birthday

The US Army’s Parade Featuring 6,600 Soldiers Aligns with Trump’s Birthday Celebration

Detailed plans from the US Army for a potential military parade on…

Liberals Strive to Secure Bennelong, But Face Risk Due to Mistrust

Sydney’s north-west marginal seat of Bennelong is dripping in blue. As you…
NSW Police Inspector Amy Scott arrives at the NSW Coroners Court for the Bondi Junction inquest.

How would you handle a crisis? These individuals confronted danger head-on

OPINION: Fight or flight is the built-in response we all have, but…