How Families Are Helping First Home Buyers Get Into the Market

For many Australians, entering the property market is no longer just about saving harder, it’s about having the right support around you.

Often referred to in the media as the ‘Bank of Mum and Dad’, family support has become an increasingly common pathway for first home buyers.

However, beyond the headline, the most effective approaches are those that are clearly structured, well understood, and aligned with long-term outcomes for everyone involved.

While the intention is simple, making homeownership more achievable, the method matters. The most effective approaches balance support with clear structure, helping families navigate property market entry in a practical and sustainable way. Below are several ways this support is commonly approached.

Contributing to the Deposit: Gifts, Loans, and Guarantees

A common starting point is helping with the deposit, either as a financial gift or a formal loan. A gift may assist first home buyers in reaching lender requirements sooner, while a loan allows for repayment arrangements within the family. A money.com survey showed that 23% of Australians have turned to family wealth early to deal with housing costs and general living expenses.

If structured as a loan, clearly documenting terms (including repayment expectations and timeframes), can help ensure alignment and transparency.

Another pathway is acting as a loan guarantor, where equity in a parent’s property is used to support a loan. This is a commonly used approach to help first home buyers enter the market sooner, depending on lender requirements and individual circumstances. Guarantor loans jumped by 71% in popularity between 2015 and 2021, emerging as a key driver behind family/ first home buyer relationships.

It is important to recognise that guarantees carry obligations, particularly if circumstances change. Seeking appropriate professional advice can help all parties understand the implications.

Buying Together: Shared Ownership

For some families, co-purchasing a property provides a more immediate entry point. This is often structured as tenants in common, where ownership is divided into defined shares.

This allows parents to support their grown children in taking their first step into the property market, while maintaining clear ownership proportions. Over time, these arrangements may evolve if ownership shares are adjusted. Research from Commonwealth Bank revealed that 25% of Australians are actively considering buying a property with a “nontraditional” partner, including parents, siblings and friends.

To support a smooth arrangement, it is important to define:

• Ownership structure and proportions
• Responsibilities for ongoing costs
• Future plans, including potential sale or transition

Establishing clarity early helps ensure expectations are aligned.

Reducing Living Costs to Accelerate Savings

Support does not always involve direct financial contribution. Reducing everyday expenses can significantly assist grown children in building a deposit.

Providing rent-free or reduced-cost living at home, even for a defined period, can improve a first home buyer’s ability to save consistently. This approach is often used as a practical way to accelerate progress toward entering the property market.

Some families also introduce structured saving approaches, such as contributing alongside their child’s savings, to support deposit readiness while reinforcing consistent saving behaviour. Finder's Wealth Building Report 2025 report found that 34% of Australian parents have turned to shares and other investments to give their children a head start, with roughly one in seven investing monthly.

Exploring Smarter Entry Strategies

From a property perspective, entry points, affordability, and buyer demand can vary significantly across locations. As a result, there are a number of pathways that may make market entry more achievable.

One example is rent vesting, where a buyer purchases in a more accessible market while continuing to rent in a preferred location. Commonwealth Bank data shows that 54% of first-time buyers are considering rent vesting. This approach allows first home buyers to enter the market sooner and begin building equity, while maintaining lifestyle flexibility.

In addition, eligible buyers may have access to government incentives, including grants, guarantees, and stamp duty concessions. At a national level, there are about 4 major first home buyer incentives/ schemes. At the State level, these Federal schemes can be combined with existing State incentives to boost savings and accessibility for first home buyers. These programs vary by state, as do entry price points and affordability conditions across metro and regional areas, making it important to consider options carefully within the relevant local market context. This is particularly relevant as affordability pressures continue to shape buyer behaviour, with over two-thirds of Australians citing cost as the primary driver for exploring alternative pathways into property ownership.

In some regions, factors such as supply levels and price growth continue to influence how and when first home buyers enter the market.

Building Confidence Through Knowledge and Planning

Beyond financial support, guidance can play an important role. Supporting grown children in understanding property ownership helps them make informed decisions as first home buyers. This includes awareness of:

• Property types and local market conditions
• Ongoing ownership considerations such as maintenance
• The importance of seeking advice from relevant professionals

Understanding these factors can help ensure decisions are aligned with both short-term goals and longer-term plans.

Supporting the Journey, Not Just the Purchase

Helping grown children become first home buyers is about more than facilitating the purchase, it is about supporting a sustainable and well-considered entry into the property market.

Whether through direct support, shared ownership, or cost-of-living adjustments, the most effective approach is one that is clearly structured and suited to each family’s circumstances.

With thoughtful planning and open communication, families can play a meaningful role in helping the next generation take a confident step into property ownership.

Take the Next Step with Confidence

Entering the property market can feel complex, especially for first home buyers navigating it for the first time. With the right guidance and a clear understanding of local conditions, however, it becomes far more achievable.

Whether you're supporting a family member or planning your own next move, speaking with your local PRD property expert can help you better understand your market, property options, and potential pathways into homeownership.