As housing affordability grows further out of reach for many Australians, the bank of mum and dad is being stretched to its limit.

A new Compare the Market survey reveals that 34% of Australians received or will receive financial assistance when buying a house.

Almost half (48%) of those surveyed said they can’t do it without having that monetary help from parents or grandparents. For those who already own a home, that number increases to 61%.

However, 29% say that while they will need financial assistance from parents or grandparents, they also said their parents and grandparents likely can’t afford it.

A quarter of Australians (26%) surveyed said they won’t need help to buy a house, while another 26% said they don’t plan on buying a house at all.

The most common type of support provided by the bank of mum and dad was giving money towards a deposit as a gift, reported by 14% of Aussies surveyed. Being a family guarantor was the next most popular choice at 9%.

^{Note: respondents could select multiple options, while the ‘buying without support’ option was exclusive. This means that percentages do not add up to 100.}

More than a third of Australian adults surveyed (37%) reported receiving other financial support from parents and grandparents for other living expenses unrelated to buying a home. One-fifth said they receive money as a gift every now and then for big expenses, while 16% say their parents give them loans, with the agreement they pay it back. One in twenty reported receiving regular financial contributions to cover recurring expenses.

^{Note: respondents could select multiple options, while the ‘none’ option was exclusive. This means that percentages do not add up to 100.}

Speaking on the results, Stephen Zeller, General Manager of Money at Compare the Market, said it was harder than ever for the bank of mum and dad to help their kids out.

“With Australian house prices having risen so much, the amount of money needed just for a deposit is a significant burden. With the current cost of living and fuel crisis, it’s going to be hard for any parent or grandparent to perhaps provide as much support as they would like to their children.

“Australians know this, and the survey revealed almost a third need the help but are worried their parents or grandparents won’t be able to afford it.

“This is why it’s crucial for any prospective buyer to talk to a broker and compare their home loan options. Saving on interest rates or finding a property with a loan-to-value-ratio that works for your budget can help you reduce the costs of your mortgage – and thus reduce the reliance on the bank of mum and dad.”

For more survey results, and to see how Australia compares to America and Canada, visit: https://www.comparethemarket.com.au/home-loans/features/intergenerational-wealth-help/

For interviews and more information, please contact:

James McCay | +61 450 930 374 | [email protected]   

^{Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.}