Brighter Buying

#1 in #14 Parents help kids with house deposit

by Kate Watt, Marketing Manager 21 April 2021

The bank of mum and dad has become an important financial institution for many young Aussies trying to get on to the property ladder.

But research from Finder suggests that most kidults are standing on their own two feet when they buy their first home.

Just 7 per cent of Aussie parents surveyed had loaned their adult kids money for a home deposit.

While even fewer – just 3 per cent – had gone guarantor or helped their kids meet a mortgage repayment.

Parents are far more likely to have helped their kidults pay for groceries, with more than one in five parents confessing to chipping in for the food bill.

Free rent was also a common perk with 17 per cent of parents allowing their adult kids to live at home without charge. A further 7 per cent said they charged just a low rent or board.

While every first-time buyer would love a fairy godmother to chip in for the deposit, it’s good news that most young buyers are doing it for themselves.

You don’t want the bank of mum and dad to go bust – especially when their earning potential is limited the closer they get to retirement age.

There are also some great government initiatives available to lower some of the barriers to first home ownership. Check out this Canstar article for information on state and federal incentives to help first time buyers… you mind find it’s better to ask Uncle ScoMo for help than your retired parents.

Looking to buy your first home? Contact us for a chat or view our current listings for sale