Borrow
Can you guess Australia’s 5th-largest lender?
New research has revealed a surprising source of loans is trailing only the big four banks when it comes to property assistance and mortgages in Australia — and it’s not a financial institution.

Can you guess Australia’s 5th-largest lender?
New research has revealed a surprising source of loans is trailing only the big four banks when it comes to property assistance and mortgages in Australia — and it’s not a financial institution.

Comparison site Mozo has revealed that the “bank of mum and dad” is now Australia’s fifth-biggest lender, having lent $92 billion in property assistance to children in a bid to help them on to the property ladder in the past two years alone.
It’s a 41 per cent increase to the total amounts lent by parents compared to last time the survey was conducted in 2018.
The research even revealed that almost three in five parents — or 59 per cent — don’t actually expect their kids to repay them for the favour.
Mozo found that 1.2 million parents across the country have been seen to provide financial assistance to their kids for the purpose of property purchases since the last survey.
The average mum and dad is offering their kids $73,522 for the pursual of property, it was revealed.
The comparison site also indicated parents are making some huge sacrifices to act in such a capacity.
Nearly 65 per cent of parents are dipping into their own savings to provide funds to their children, while almost half of mums and dads have indicated they are cutting expenses or delaying retirement in their bid to help their kids move on to the property ladder.
A further 16 per cent revealed they had pulled money from their own home equity to help out.
Mozo director Kirsty Lamont has highlighted that the move of the bank of mum and dad into fifth place reflects Australia’s property market being “incredibly challenging for younger generations to break into”.
She noted property prices had surged by 395 per cent in the last 25 years, and for this reason, “the bank of mum and dad has become an essential player in our nation’s housing market”.
“At present, the cost of buying a property is 7.2 times the annual income of a typical household, whereas 25 years ago it was 1.6 times the annual household income,” Ms Lamont said.
And with loan contributions having grown by 41 per cent in the last two years alone, “the bank of mum and dad will not be closing shop anytime soon”.
About the author

About the author


Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Loans
CBA launches digital home loan with 10-minute application
According to the bank, Unloan will provide a single low-cost interest rate to borrowers with an application time of as little as ten minutes. ...Read more

Loans
Are central banks weighing the economic pain of rate hikes?
The hype around interest rate hikes usually centres around the urgent and fundamental need to alleviate the consequences of inflation – but does this monetary policy do more harm than good? ...Read more

Loans
As rates begin to rise, how much more will new borrowers pay?
Mortgage holders could be asked to pay over $1,000 more per month due to rising interest rates. ...Read more

Loans
New investor home loan commitments climb to a record high
The value of new investor loan commitments reached $11.7 billion in March. ...Read more

Loans
Major banks announce interest rate changes
Following the RBA’s first rate hike in 11 years, the big four banks have tweaked their home loan variable interest rates. ...Read more

Loans
Up to $400bn of fixed rate home loans tipped to roll off into variable rates
A surge of refinancing is anticipated in the next couple of years. ...Read more

Loans
‘Liar loans’ most prevalent at ANZ, survey finds
UBS has identified an increase in factual misstatements coming from ANZ’s mortgage customers. ...Read more

Loans
How will rising rates impact mortgage stress?
Mortgage holders could face thousands of dollars in extra repayment costs per year as a result of impending rate hikes. ...Read more