The “Bank of Mum and Dad” Is Now a Lifeline for First-Home Buyers

PHOTO: First-home buyers today aren’t just struggling with high prices — they’re battling a brutal race against time. FILE

📍 Why family wealth is the secret weapon in Australia and New Zealand’s housing crisis

🏠 Parental Help No Longer a Bonus – It’s a Prerequisite

First-home buyers today aren’t just struggling with high prices — they’re battling a brutal race against time. In 2025, the “Bank of Mum and Dad” has shifted from a lucky bonus to a non-negotiable necessity in getting on the property ladder.

With property prices across New Zealand and Australia continuing to surge, and home loan deposit requirements climbing with them, many young buyers are turning to their parents not only for money but for emotional and strategic support.

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📉 No Family Help? You’re Falling Behind

Canstar research director Sally Tindall warns of a growing divide:

“Those with family support can move quickly. Those without it are constantly playing catch-up.”

She says parental contributions aren’t just gifts — they’re strategic investments in their children’s financial futures. Some families offer partial deposit matching (“You save $50k, we’ll match it”), while others go all-in to push their kids past the ever-rising deposit barrier.

Property insiders say the “Bank of Mum and Dad” is no longer a bonus, it’s a necessity for many.

👪 The Family Unit Is Now the Buyer

Melbourne buyer’s advocate Cate Bakos confirms the shift:

“We’re working with families as a unit now — it’s no longer just about the buyer.”

Adult children are staying home longer to save, while parents are front and centre at auctions and viewings, often acting as co-advisors or emotional ballast. The stress of home buying today doesn’t just sit on the buyer — it weighs on the whole whānau.

💼 It’s a Partnership, Not a Handout

Financial advisor Louisa Sanghera sees the trend intensifying. Partial deposit matching, emotional support, and loan guarantors are all part of a bigger picture:

“That kind of leverage can mean the difference between winning an auction or walking away.”

And this isn’t just about 20-somethings. Sanghera’s clients range into their 30s and 40s, still relying on parents to get across the property line. That’s how hard it’s become to buy in.

🧠 Why This Matters

This shift in generational wealth transfer has profound implications:

It widens the wealth gap between families who can help and those who can’t.
It delays independence for young people unable to secure a home solo.
It redefines the role of parents as co-investors in their children’s future — whether they like it or not.

🔚 Final Word

If you’re trying to buy your first home in 2025 without help, you’re not just saving — you’re in a race you probably can’t win alone. The Bank of Mum and Dad isn’t just open — it’s booming, and for many, it’s the only way through the front door.