How the ‘Gift of Mum and Dad’ Revolutionizes Australia Home Loan Assistance – Money Advice Experts in Services

The landscape of parental support for aspiring Australian homeowners has undergone a significant shift, with the traditional ‘Bank of Mum and Dad’ now transitioning into the ‘Gift of Mum and Dad,’ as revealed in Mozo’s latest report. Parents are increasingly providing substantial financial assistance for property purchases without expecting repayment, as soaring property prices and deposit challenges make it difficult for young buyers to enter the market.

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Mozo’s ‘Bank of Mum and Dad’ Report 2025 highlights a notable change in parental support trends, with a whopping 75% of parents offering financial aid for property purchases as an outright gift or non-repayable contribution, compared to just 33% in 2021. The average amount gifted for a home deposit has also seen a significant increase, currently averaging $74,040.

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Rachel Wastell, Mozo’s finance expert, emphasizes this shift, stating that the current trend signifies a move from a traditional lending model to a more generous and legacy-driven approach. The generosity of parents comes at a time when Australian house prices have surged by over 51% in the past five years, pushing the dream of homeownership further out of reach for many.

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Parents are making sacrifices to provide this support, with many drawing from their existing savings, current income, or cutting back on personal expenses. While cash gifts are on the rise, parents are less willing to downsize the family home to assist financially, with only 3% considering this option in 2025, a significant drop from 14% in 2021.

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Despite the majority of parental assistance coming from savings or income, there is a concerning trend where 3% of parents are resorting to higher-risk options like credit cards or personal loans to fund their contributions. This highlights the growing difficulty of entering the housing market without help from the ‘Bank of Mum and Dad.’

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The average $74,000 gift is not just a generous gesture but often a crucial lifeline for younger buyers to bridge the deposit gap. As affordability continues to be a challenge, parental contributions are reshaping the flow of money between generations, making homeownership more attainable for many.

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The ‘Gift of Mum and Dad’ represents a significant evolution in parental support for homebuyers, reflecting the changing dynamics of the Australian property market and the vital role parents play in helping their children achieve the dream of owning a home.

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