For years, the so-called Bank of Mum and Dad has ranked among Australia’s biggest financial backers of first-home buyers, historically contributing tens of billions of dollars to help children enter the property market.
But according to Mozo’s latest survey, that support has shifted from loans to outright gifts.
“In 2021, a third of parents didn’t expect repayment, now it’s three quarters. That’s not a bank, or a loan, that’s a legacy,” said Rachel Wastell (pictured), Mozo’s personal finance expert.
Mozo’s Bank of Mum and Dad Report 2025 surveyed 1,019 Australian parents with adult children, showing a clear generational shift in financial support strategies.
Australian house prices have surged by more than 51% since March 2019, climbing from $646,000 to $976,800 by the end of 2024.
For first-home buyers, this price surge has pushed a 20% deposit requirement from $129,200 to $195,360 — a $66,160 jump in just five years.
Faced with this growing hurdle, many parents are stepping up with direct financial assistance, making it easier for their children to save for a home deposit.
Mozo’s research found that 49% of parents who provided financial support in 2025 did not expect repayment, and 26% explicitly classified their help as a gift.
That means 75% of parents are now providing support with no expectation of repayment — a major shift from 2021, when only 33% of parents expected no repayment.
Where once loans were common, today’s parents are increasingly viewing their financial help as building a legacy rather than creating debt.
Parents in 2025 are moving away from riskier support options such as going guarantor (down from 15% to 8%) or co-buying property (down from 10% to 2%).
Instead, 23% of parents now provide accommodation rent-free to help children save for deposits — up from 15% in 2021 — while 20% are directly contributing to deposits.
Buying a property outright for their children is less common, dropping from 11% to just 3% in 2025, Mozo’s Bank of Mum and Dad Report found.
Parents are digging deeper into their pockets. The average gift towards a home deposit rose from $69,907 in 2021 to $74,040 in 2025.
However, while more parents are offering rent-free accommodation, the average cost has halved — falling from $13,845 in 2021 to $6,227 in 2025 — suggesting shorter or more budget-conscious support periods.
The financial help isn’t without sacrifice. Mozo found:
Most parents (83%) reported that all their children received equal support. However, 20% admitted they weighed the financial impact on siblings before offering help, and 3% even regretted giving more to one child than others.
Still, 66% believe it balances out over time as circumstances change.
While gifting money is becoming more common, fewer parents are willing to downsize their homes to assist.
In 2025, 76% said they would not consider downsizing to help their children, up from 55% in 2021. Only 3% had already downsized in 2025, compared to 14% in 2021.
Mozo’s research showed that one in three parents felt emotional pressure to support their children financially.
However, Mozo warned that even with parental support, first-home buyers still face high borrowing costs.
Choosing the right home loan is crucial to avoid additional financial strain.
Switching to a low-cost home loan, such as those recognised in the Mozo Experts Choice Awards, could save buyers more than $300 a month — or $4,000 a year — based on the mean residential dwelling price.
Mozo’s analysis revealed that, with an average home loan rate of 6.42% p.a., buyers need to manage monthly repayments of $4,898 for the ABS mean residential dwelling price of $976,800.
However, when factoring in APRA’s 3% serviceability buffer, buyers must demonstrate the ability to afford repayments of more than $6,500 per month.
This means a single applicant would need a minimum annual income of $149,244, effectively pricing out many single-income earners — even those earning well above the national average.
