With Australian property values soaring into the stratosphere, first home buyers (FHBs) are once again tapping the “Bank of Mum and Dad” in large numbers.
In January 2020, prior to the coronavirus pandemic landing in Australia, a survey by Finder revealed that over half of Australian parents were directly subsidising the living expenses of their children, with 15% providing funds for a home deposit, 5% going guarantor on their children’s home loan and 4% helping with mortgage repayments.
The Bank of Mum and Dad was even listed as the fifth biggest lender in Australia behind the four major banks, following a 41% rise in contributions in the two years to March 2020, with $92 billion of property assistance provided in the 2019 calendar year.
