Insane sum average parent is gifting kids for property buys

Parents are dishing out more money to their adult kids than ever and there’s been a huge shift in what’s expected in return.

Australian parents are spending hundreds of thousands to get their children on the property ladder, with new research revealing most don’t want to be repaid a cent.

For years the so-called “bank of mum and dad” has been Australia’s silent property giant, helping first-time buyers with home loans and financial lifelines.

Now the bank of mum and dad has become the ‘gift of mum and dad’ as recent research by Mozo Money showed 75 per cent of parents who help their kids buy a property don’t want the money back, despite them forking out more than ever before.

There has been a significant shift in just how far parents are going to help their adult children to get into the market, as just four years ago only one third of parents didn’t expect to be repaid.

As property prices have lifted by more than 50 per cent in five years, deposits have surged by an average of $66,000, according to Mozo research.

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Rachel Wastell Mozo Money personal finance expert.

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Mozo’s personal finance expert Rachel Wastell said many young buyers are relying on parental support to bridge the deposit gap as Australian house prices have skyrocketed.

“This really shows how hard it’s become for first-home buyers to climb onto the property ladder,” Ms Wastell said.

“In the past, parents might have given their kids a boost up and expected them to pay them back once they’d found their footing.

“But now, the bottom rungs of that property ladder are gone, and parents aren’t just offering a hand, they’re building those rungs themselves, often with no expectation of being repaid.”

Aussie parents are gifting on average $74,000 to their children, which has increased by $4,000 since 2021, Ms Wastell added.

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The average gift for parents to give their children for a deposit is $74,000 according to Mozo.

Many parents went the extra mile and purchased a home for their child or co-purchased along with them.

“There’s no doubt parents are stepping in where the market, and wages, have failed first time buyers, but it’s also creating emotional and financial tensions,” Ms Wastell said.

Those who purchased a home for their children were spending an average of $405,000, while others who co-bought with their son or daughter spent around $252,000.

“It’s one thing to help your kids, but using debt to do it is dangerous, parents could be trading short term generosity for long term financial concerns,” Ms Wastell said.

“We’re seeing some parents delay retirement, dip into savings, or even rely on credit cards and loans to support their children,” she added.

Another common way to fund children was letting them stay at home rent free, which is giving adult children an average financial boost of $6,227.

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Parents were now forking out $74,000 in deposits, Ms Wastell said.

While more parents are giving money, fewer are willing to downsize their homes to do so, the research showed.

In 2025, 77 per cent of parents said they wouldn’t consider downsizing to help financially, up from 55 per cent in 2021, and only 3 per cent have actually downsized compared to 14 per cent four years ago.

“With property prices skyrocketing, it could be that many Aussie parents are ‘equity rich’ and have the confidence to gift without changing their lifestyle,” Ms Wastell said.

“Aussie parents are clearly generous, but in 2025 they’re drawing the line at giving up the family home, especially when that home has most likely become their biggest financial asset.”

“Before offering that helping hand, it’s crucial to make sure you’re not relying on high interest debt and that your own financial future is secure.”

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Originally published as Insane sum average parent is gifting kids for property buys