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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”.

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