As housing affordability remains a major barrier for younger buyers, new data shows just how critical family support has become for Gen Z entering the property market.
According to the latest Mortgage Choice Home Loan Report, more than one in five Gen Z home buyers (aged 18–28) are funding their deposit with a cash gift from family—making the “bank of mum and dad” one of the most significant contributors to first-home purchases today.
This comes as house prices continue to reach record highs. In some cases, particularly in Sydney, brokers report that family gifts can range from $10,000 to as much as $500,000—highlighting the widening gap between property prices and young buyers’ savings capacity.
Other key findings from the report:
🔹 29% of Gen Z say they would consider borrowing funds for a deposit.
🔹 25% are accessing the First Home Guarantee Scheme.
🔹 39% would invest $100,000 into buying their first home if given the chance.
The outlook, however, isn’t without optimism. Interest rate cuts earlier this year are helping ease mortgage pressure and boosting buyer confidence. In fact, one-third of consumers say current rates have made them more confident to buy property—compared to a year ago, when 63% said interest rates were undermining their confidence.
Meanwhile, refinancing activity continues to grow, with the value of refinanced loans rising 30% year-on-year—driven by borrowers seeking better deals as the RBA begins its rate-cutting cycle.
As Mortgage Choice’s CEO Anthony Waldron puts it, “Inflation has reduced from its previous highs, and home loan interest rates have started to fall.”
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