Forget waiting for the will – a quiet wealth revolution is reshaping the Great Australian Dream as parents bring the help forward and turn renters into owners now, not decades later. Brokers say the Bank of Mum and Dad is now one of the most powerful forces in first‑home buying, with six‑figure gifts fast‑tracking entry into blue‑chip suburbs.
New data from Money.com.au reveals 23 per cent of Australians have asked or are considering asking parents or grandparents for an early inheritance to help keep up with surging living and housing costs.
Almost half of those eyeing a ‘living inheritance’ (47 per cent) say they’d use it to cover rent or everyday expenses, while 31 per cent would put it towards a deposit or mortgage repayments.
Healthcare is another pressure point: 38 per cent say the funds would help with medical or healthcare costs.
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Source: Money.com.au
Others would clear debts such as credit cards, personal loans or student loans (18 per cent), pay for childcare or education (6 per cent), or back a business (3 per cent).
Money.com.au finance expert Sean Callery says cost pressures are changing how families think about wealth transfer.
“Traditionally, inheritance is something people receive later in life, but for many Australians the pressure of rising living costs and housing expenses is prompting them to start conversations with their parents or family members about accessing that financial lifeline earlier, if possible,” he says.
“In some cases, parents or grandparents are effectively providing a ‘living inheritance’ to help their adult children or grandchildren cover rent, scrape together a house deposit, pay down their mortgage, or even cover medical costs.”
Callery cautions families to balance generosity with security.
“While some families may choose to bring inheritance forward, it’s not something people should expect, no matter how tough things get financially. Any decision to provide an early inheritance should be carefully weighed to ensure it doesn’t compromise the older generation’s retirement or long‑term financial security.”
First-home buyers William Smith and Alicia Morgan outside their unit in Yeerongpilly, Brisbane. Picture: Lyndon Mechielsen
Not everyone’s on board.
The survey shows 41 per cent wouldn’t ask family for an early inheritance and 36 per cent don’t expect to receive one at all.
Gen Z is driving the shift.
Nearly half of Gen Z (49 per cent) have asked or would consider asking for an early inheritance, compared with 37 per cent of Millennials and 15 per cent of Gen X.
Among Gen Z who’ve asked or would ask, 61 per cent would funnel the money into rent or day‑to‑day costs, versus 45 per cent of Millennials and 38 per cent of Gen X.
Gen X is most likely to put an early inheritance towards a deposit or mortgage (44 per cent), ahead of Millennials (36 per cent) and Gen Z (19 per cent).
On the ground, brokers say the “Bank of Mum and Dad” has become a defining force. Mortgage broker Brett Sutton, from Two Red Shoes, says eight in ten first‑home buyers he sees receive some form of family help.
“This support usually comes in the form of gifted deposits, parents acting as guarantors through family pledge structures, or simply allowing their children to live at home or in an investment property rent‑free or at below‑market rent while they save,” he said.
“For many first‑home buyers today, family support can be the difference between entering the property market now versus ten years’ time.”
A new money.com.au survey revealed 23 per cent of Aussies turn to family wealth early to cope with rising living and housing costs.
Sutton says parents are bringing forward wealth transfers because the timing matters.
“Baby Boomers hold a significant share of Australia’s property wealth, and many are recognising that helping their children buy earlier can have a much greater financial impact than leaving that support until their children are in their 50s or 60s,” he said.
“We’re regularly seeing parents gift deposits north of $200,000, particularly in Sydney where the deposit hurdle can otherwise take years to overcome.”
That money doesn’t just accelerate timelines – it can reshape what and where buyers can afford.
“Buyers who might otherwise take another five to ten years to accumulate a deposit are able to enter the market sooner, and often at a slightly higher price point than they could have reached on their own,” Sutton said.
“Another effect is that buyers are able to target more established suburbs rather than being pushed exclusively to the outer fringe.”
But there’s a sting in the tail. Sutton warns the growing role of family wealth risks widening the gap between haves and have‑nots.
“It would be a real shame if Australia reached a point where the main pathway to home ownership was simply whether or not your parents owned property.”
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