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Thousands of Australians are reliant on their parents to help buy their first property as home ownership becomes increasingly difficult due to increasing dwelling prices.
Almost one in five Australians are turning to the bank of mum and dad to secure financial help in buying their first property, according to a new report.
Finder’s First Home Buyer Report 2025, based on a survey of 1,006 Australian first home buyers, found that 17 per cent relied on financial help from their family to save their deposit.
The findings showed that almost 20,000 first home buyers depended on their parents for financial aid when buying their first home.
The result marked a 6 per cent increase from 2022, when just 11 per cent of first home buyers were reliant on their mum and dad.
The report also revealed that those who received support from their parents had 41 per cent more money left over in savings after buying their first home, compared to those who didn’t receive financial help.
Among first home buyers without parental support, 40 per cent took five years or more to save a deposit.
In comparison, only 29 per cent of those who received assistance from parents took five years or more to save.
The survey found that first home buyers used different strategies to save for a deposit.
In total, only 17 per cent of buyers counted on their parents’ money as a strategy to have a deposit, while 21 per cent lived longer in their family home to save on rental costs and reach property ownership faster.
First home buyers also resorted to spending less on eating and drinking out, saving slowly over a long period of time, and taking on a second job.
The report came after Cotality’s national Home Value Index rose another 0.5 per cent in May, and 1.7 per cent higher over the first five months of the year.
Data showed the median house price in Australia’s combined capital cities is now $1,025,742, while the median unit price in capital cities is $697,233.
In Australia’s combined regional areas, the median dwelling value is now $678,818.
However, the two recent rate cuts position the nation’s dwelling prices across capital cities to grow even further, with nationwide house prices to rise 6 per cent by the end of FY26.
Domain’s latest Price Forecast Report revealed Sydney’s median house price will reach a record $1.83 million by the end of FY26, while the median unit price is expected to register at $889,000.
Similarly, Melbourne’s house prices are expected to surge to a record median value of $1.11 million by the end of FY26, with the city’s median unit price forecast to reach $584,000.
Finder’s personal finance expert, Sarah Megginson, said that for many young Australians, home ownership may feel like an unattainable dream unless their parents are willing to help financially.
“First home buyers with parental help aren’t just getting in earlier – they’re getting in stronger, with more savings, bigger budgets, and a huge headstart,” Megginson said.
Megginson cautioned parents against being too generous and lending money in a way that would leave them financially unstable.
“The worst-case scenario is if mum and dad leave themselves vulnerable in the process of trying to help their kids,” she said.
“I’ve heard of parents who end up working longer than they planned, delaying retirement or leaving themselves financially short once they retire, because they were too generous when giving their kids a financial leg-up,” she concluded.
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