![\"GEN23:](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/https:\/\/prod.static9.net.au\/fs\/5d08247d-3eeb-4aa0-a807-bc28bbbb7331.jpeg\")
More first home buyers are relying on family financial help to get on the housing ladder. (Photo: Dion Georgopoulos \/ Australian Financial Review) (Dion Georgopoulos \/ Australian Financial Review)<\/p>\nA\ufeffhead of tomorrow’s interest rates decision by the Reserve Bank of Australia, the impact of the bank of mum and dad on home prices continues to stir debate.<\/p>\n
The cash rate is hotly tipped to remain on hold at 3.60 per cent when the RBA hands down its decision at 2.30pm tomorrow, leaving hard-pressed mortgage holders disappointed.<\/p>\n
The forecast was supported by a survey of economic experts by comparison site Finder that found 30 from 35 expected no change.<\/p>\n
More first home buyers are relying on family financial help to get on the housing ladder. (Photo: Dion Georgopoulos \/ Australian Financial Review) (Dion Georgopoulos \/ Australian Financial Review)<\/p>\n
But economists and analysts showed far less unity when quizzed about the effects of parents giving their children financial support to gain a foothold in the housing market.<\/p>\n
New Finder research \u2013 based on a survey of 1006 first-home buyers \u2013 revealed 17 per cent relied on the financial help of parents or family to save their deposit, up from 11 in 2022.<\/p>\n
That’s the equivalent of almost 20,000 first home buyers a year who were lucky enough to receive financial help from their parents.<\/p>\n
Finder head of consumer research Graham Cooke said without it, property ownership would be out of reach for many young people.<\/p>\n
“Those who can lean on mum and dad are typically entering the market not just sooner, but in a much stronger position,” he said.<\/p>\n
But while it’s giving some lucky few a leg up, \ufeffnearly one in three experts canvassed by Finder believe it is also distorting the housing market.<\/p>\n
Among them are Michael Yardney, from Metropole Property Strategists, who thinks a twin-track housing market is evolving.<\/p>\n
“This is creating a two-tier market of the haves and have-nots, families with property equity already and others,” he said.<\/p>\n
On the other hand, Tim Reardon from the Housing Industry Association said family support is a natural part of a well functioning market. <\/p>\n
“[Parents] are not a distortion, they are correcting the market distortion created by the severe lending restrictions imposed on first home buyers,” he said.<\/p>\n
There was also concern about the impact of the government’s First Home Guarantee Scheme, which will allow \ufeffall first home buyers to purchase a home with only a 5 per cent deposit instead of the usual 20 per cent.<\/p>\n
From the 26 experts canvassed, 65 per cent think it will encourage first home buyers to take on more debt than they should.\ufeff<\/p>\n","protected":false},"excerpt":{"rendered":"A\ufeffhead of tomorrow’s interest rates decision by the Reserve Bank of Australia, the impact of the bank of…\n","protected":false},"author":2,"featured_media":258437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-258436","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/258436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=258436"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/258436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/258437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=258436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=258436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=258436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}