Many Australian parents are planning to give their children a substantial financial leg-up to help them buy their first home, new research showed.
According to Finder's Parenting Report 2023, which surveyed 1,033 Australian parents of children under 12, parents are aiming to "gift" their kids a whopping $33,278 on average to put towards a first home deposit.
That figure is about a third of the average first-home buyer deposit ($96,274) based on the average first-home buyer loan of $481,368 in March.
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The results suggest the bank of mum and dad remains a significant stepping stone for younger people getting on the property ladder.
Parents in Victoria are the most generous, prepared to give their adult children an average of $52,716 towards purchasing their first home, followed by South Australian ($44,656) and New South Wales ($40,191).
Parents in Queensland were prepared to cough up an average of $36,497, followed by West Australians with $31,076.
But some parents were not prepared, or did not have the means, to make the same substantial gift for their children. More than one-in-two (51 per cent) said they would give $1,000 or less.
The survey results reaffirm how without the financial help of their parents, plenty of young Australians will be priced out of the property market.
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"Recent property price hikes combined with interest rate rises have made it extremely tough for young buyers to save a sufficient deposit let alone qualify for a home loan," said Finder money expert Sarah Megginson.
It was also important for young people to realise that stumping up a deposit was only the initial outlay in buying a property, she said. Further responsibilities include managing council rates and strata fees, paying for repairs and managing money.
Parents should also ensure they're not exhausting their savings or retirement funds by gifting money to their children for a home deposit, Megginson said.
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