The Bank of Mum and Dad has long been a fixture in Australia’s property market. But new findings from Mozo’s Bank of Mum and Dad Report 2025 suggest the role of parents in helping their children buy homes has evolved from lender to legacy-maker.
In 2025, this informal institution has become one of the largest financial forces in the country—contributing an estimated $2.7 billion in property support. But what’s notable isn’t just the size of the contribution. It’s the shift in sentiment: 75% of parents now offer this money as a gift, with no expectation of repayment.
This transition—from conditional loan to unconditional gift—has significant implications, particularly for those in the building industry.
A Legacy Not A Loan
Mozo surveyed over 1,000 Australian parents with adult children and found a marked change since its last study in 2021. While one-third of parents back then didn’t expect to be repaid, that figure has more than doubled in 2025.
“That’s not a bank, or a loan. That’s a legacy,” said Rachel Wastell, Mozo’s personal finance expert. “The property ladder is losing those bottom rungs, and Aussie parents are stepping in to build new ones using their own savings.”
The report also found that more than half of parents who gave financial help never received similar support from their own families, suggesting a profound shift in generational wealth transfer.
Home Deposits Are Now A Team Effort
In practical terms, the report outlines just how much support is being given—and where it’s going:
- The average parental contribution toward a home deposit has risen to $74,040 in 2025, up from $69,907 in 2021.
- 23% of parents are offering free rent, giving their children time to save—up from 15% four years ago.
- Support is increasingly delivered as upfront gifts, not ongoing financial involvement. Riskier methods such as going guarantor or co-buying property are in decline.
Builders should take note. These trends suggest a growing pool of first-home buyers arriving on the market not through high income or long-term saving, but through one-time financial boosts from family.
What This Means For Builders
The implications for builders and developers are significant:
- Deposit-ready buyers may emerge suddenly, bypassing traditional timelines thanks to parental gifts.
- There is an opportunity to create products that cater to solo buyers backed by family capital—smaller, smarter homes with high perceived value.
- Marketing and sales approaches may need to reflect the presence of the “invisible buyer”—the parent who is contributing financially, often guiding or even influencing purchase decisions.
Notably, parents are also becoming more cautious. Fewer are tapping into home equity or downsizing. Most are funding their children through savings (54%) or current income (29%), with nearly one in five cutting personal expenses to help.
This means the gifting isn’t limitless. Builders who understand the emotional and financial boundaries at play will be better positioned to build trust with both the buyer and their backer.e financial boosts from family.
A Shifting Landscape for First-Home Buyers
While the rise of the Bank of Mum and Dad has made home ownership possible for many, it has also widened the affordability gap. According to Mozo, the average 20% deposit now sits at $195,360, pricing out many Australians without access to family assistance.
In 2025, to afford the median Australian home, a buyer would need a pre-tax annual income of $149,244, once lenders apply serviceability buffers. For single-income earners without family help, that target is increasingly unrealistic.
For builders, this sharpens the importance of offering entry-level product ranges that cater not only to dual-income couples and families, but to individuals relying on one-time intergenerational support.
Access the Full Report
Mozo’s Bank of Mum and Dad Report 2025 offers critical insights for builders, brokers, and property professionals looking to understand the modern buyer landscape.
You can access the full report here:
The Good Builder will continue to cover the changing nature of housing affordability, intergenerational wealth, and what it means for Australia’s construction industry. Subscribe to stay informed.
Author: The Good Builder
The Good Builder is a media platform that provides news and insights for Australia’s home building industry. From exclusive stories and curated insights to bold industry perspectives, we deliver the news and updates that keep builders, suppliers, and the entire home building industry inspired and ahead of the curve.
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