Bank of Mum and Dad: What $40,000 Really Does for First Home Buyers?

They say nothing beats a parent’s love. Add $40,000, and a set of house keys can feel closer. Below is a clear look at family support. You will also find other ways to buy a first home that give parents a breather.

Saving a first home deposit can feel like a marathon. Across Australia, it takes about 5.6 years on average to save a 20% deposit. Deposits grow slowly. Property prices can rise quickly. In the past 12 months, home values climbed 4.8%.

For many first-time home buyers the goal posts keep shifting. Enter the bank of mum and dad. Nearly one in three homeowners with a mortgage have had help from their parents. That help averages around $40,000.

Generosity alone does not guarantee a loan approval. You still need a plan that works for lenders and for your family.

Bank of Mum and Dad: the head start and the limits

Not every family can put up $40,000. That is fine. Even small, well-planned help from the bank of mum and dad can still make a difference.

Talk to us early about the right type of support. Some offers feel helpful but slow things down. The aim is to boost your chances, not build hurdles.

Bank of Mum and Dad Australia: how it typically works

Parents can help in different ways. Support from the bank of mum and dad might mean letting adult children live at home longer to lift savings.

Cash support is common, but the details matter. Keep these three points in mind:

Gift letter

A lender may want written proof that a cash gift is not repayable. It shows the money is free of strings.

Parent loan risks

If the help is a loan, some lenders treat it like a personal loan. Required repayments can cut borrowing power.

Genuine savings still count

Lenders like to see regular saving for three to six months. It shows discipline to manage repayments.

The bank of mum and dad: common traps to avoid

Parents want the best for their kids. Support from the bank of mum and dad should not put their own future at risk. If help will stretch mum and dad, rethink the plan.

Be clear on paperwork and ownership. Decide if the help is a gift, a loan, or a guarantee. Document it, keep records, and protect family relationships and borrowing power.

Options that do not rely on parents

If the bank of mum and dad australia is not an option, there are solid paths that keep family finances safe:

Home Guarantee Scheme at 5% deposit

Buy with a 5% deposit and pay no lender's mortgage insurance. Recent changes brought unlimited places and higher price caps.

First Home Super Saver Scheme

Use super to grow your deposit. Many buyers save about 30% faster than with a standard account.

Co-buy with siblings or friends

Not for everyone, but it can lift buying power and share costs. Speak to us about loan structures and exit plans.

Osinski Finance: Bank Of Mum And Dad Guide For First Home Buyers

Osinski Finance is an independent mortgage brokerage that works for you, not the bank. We compare lenders and explain your options clearly. We manage the process from assessment to settlement.

We help with home loans, investing in a property, and becoming a first-time home buyer.

Whether you are using help from the Bank of Mum and Dad Australia or going it alone, we will structure the loan so you can buy sooner and sleep better.

Get in touch for a friendly chat and a clear plan forward.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.