New data from UBS economists has revealed that 20 per cent of Australians gave money to a family member over the past 12 months – the highest figure since the survey began in 2019.
Among those accessing the “bank of mum and dad,” just over half received $5,000 for general expenses, while one in four asked for as much as $200,000 to buy property.
The surge in family lending comes alongside new first-home buyer assistance from the federal government, with UBS predicting house prices will rise by around 3 per cent over the next year.
UBS economist Stephen Wu said family support has been crucial for younger Australians trying to get a foot in the property market.
“Australia is a very wealthy country by some metrics, amongst the wealthiest in the world and we know that a lot of that wealth is tied up in housing,” he told SBS World News.
“A lot of these older Australians, so parents and grandparents are actually moving some of this wealth and providing it to their family and members, their children and their grandchildren, such that they are able to meet cost of living pressures and also to get a foot in the housing market.”
Wu explained that this intergenerational wealth transfer is becoming increasingly common.
Meanwhile, cost-of-living pressures have eased for many Australians.
“We know that income growth has been quite strong. We know that inflation is easing and it’s within the RBA’s inflation target band,” Wu said.
“That means that real wages are growing again. So I think there is quite a good sign that the worst is behind us and we’re going to see for those younger Australians, this boost to real incomes helping to alleviate cost of living pressures.”
However, rising property prices could create challenges for some.
“Obviously, there is a lot of wealth in the country and those who are lucky enough to actually get that [family] support are going to be quite grateful. But not everyone is going to be quite so lucky,” Wu said.
The federal government will expand its Home Guarantee Scheme in October 2025, allowing eligible buyers to purchase with a five per cent deposit and no lender’s mortgage insurance.
The scheme will also remove income and place limits and raise property price caps across most regions.
But as more buyers tap into the upgraded program, around 100 suburbs may fall outside the scheme’s caps by the end of 2025.
Price caps will increase in Sydney from $900,000 to $1.5 million, Melbourne from $800,000 to $950,000, and Brisbane from $700,000 to $1 million.
Adelaide, Perth and Hobart’s caps will rise from $600,000 to $900,000, $850,000 and $700,000 respectively.
Darwin’s cap will remain at $600,000, while the ACT’s cap will increase from $750,000 to $1 million.
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