According to the latest data from Digital Finance Analytics, nearly 55 per cent of Australian first home buyers turn to their parents for assistance to pull together a deposit for their first home. Listing the deposit as the main barrier to purchasing a home, it is estimated it will take couples an average of six years to save for a deposit on an average home in Melbourne.
High median house and unit prices in Melbourne now mean that a 20% deposit to purchase a house is $152,000, or $110,000 for a median-priced unit.
In fact, two-thirds of these first home buyers receive an average amount of $88,450 from their parents as a deposit, according to the DFA data. This puts the estimated total lending from parents at around $20 billion, making the Bank of Mum and Dad one of the top 10 lenders in Australia.