Rising living and housing costs are pushing more Australians to draw on family wealth earlier in life, reshaping how first-home buyers and property investors approach deposits, repayments, and long-term borrowing capacity.
New research from Money.com.au suggests “living inheritance” is emerging as an important support for clients struggling with mortgage rates, rent, and everyday expenses.
That strain is showing up in national data: the latest NAB Australian Wellbeing Survey shows household financial stress has risen for a second consecutive quarter, underlining the pressure on budgets as living costs climb.
The Money.com.au survey found 23% of Australians have asked or are considering asking parents or grandparents for an early inheritance to help cope with intensifying financial pressures.
Among those considering this step, almost half would use the money for rent or general living expenses, while around a third say it would go towards a house deposit or paying down their mortgage.
Separate research from Canstar’s Consumer Pulse Report found housing costs topped the list of financial worries heading into 2026, with more than one in five respondents nominating mortgage and rent concerns.
Money.com.au finance expert Sean Callery said cost-of-living pressures are changing how families think about passing on wealth.
“Traditionally, inheritance is something people receive later in life, but for many Australians the pressure of rising living costs and housing expenses is prompting them to start conversations with their parents or family members about accessing that financial lifeline earlier, if possible,” Callery said.
“In some cases, parents or grandparents are effectively providing a ‘living inheritance’ to help their adult children or grandchildren cover rent, scrape together a house deposit, pay down their mortgage, or even cover medical costs.”
The research also shows early inheritance funds are being earmarked for medical and healthcare costs, debts such as credit cards and personal loans, and – to a lesser extent – childcare, education, and business support.
Younger Australians are at the centre of the trend. Nearly half of Gen Z respondents (49%) say they have asked or would consider asking for an early inheritance, compared with 37% of Millennials and 15% of Gen X.
Among Gen Z who are open to a living inheritance, 61% would put the money towards rent or everyday living costs. Gen X, by contrast, are more likely than other cohorts to channel early inheritance into a home deposit or mortgage repayments, and to direct funds to healthcare.
Callery cautioned that bringing wealth forward comes with trade-offs.
“Any decision to provide an early inheritance should be carefully weighed to ensure it doesn’t compromise the older generation’s retirement or long-term financial security,” he said.
For mortgage brokers, the findings highlight the growing role of intergenerational support in getting clients into the market and keeping their finances on track.
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