The Burrow
Mar 4, 2025
As house prices have climbed to record levels and outpaced wage growth in the last few decades, it’s become harder for prospective home buyers to be able to afford buying a home.
This is leaving some to turn to the bank of mum and dad before they can get an actual lender to approve a mortgage.
So, how many people turn to parents and grandparents in their financial time of need? How many homeowners would not have gotten a home if they hadn’t had that support? As home loan experts, we endeavoured to find out.
Plenty of adults have received monetary support to purchase a house, though it was more common in North America than in Australia. The USA had the most with 37% of respondents receiving some kind of financial help to get a house, followed by 36% of Canadians, but only 29% of Australians.
That’s an average of 34% across all three nations.
In contrast, almost half of Australians had bought a house without financial support, followed by 42% of Americans and 35% of Canadians. Canada had the highest number of renters at 37%. Followed by 32% of Americans and 29% of Australians.
There were different ways in which parents and grandparents would help their adult children. The most popular across each market was gifting money for a deposit, accounting for 11% in all three countries. The other methods are showcased in the table below.
Note: respondents could select multiple ‘yes’ options, while the ‘no’ option was exclusive. This means that percentages do not add up to 100.
| What form of financial help did you receive from parents/grandparents to buy a home? | Australia | USA | Canada |
|---|---|---|---|
| They became parental/family guarantors | 4% | 8% | 6% |
| They gifted money to go towards a deposit | 11% | 11% | 11% |
| They offered money for the deposit on the agreement I paid them back | 5% | 5% | 5% |
| They offered free rent to live with them while I saved for a deposit | 4% | 5% | 4% |
| They purchased the home with me | 2% | 3% | 4% |
| They helped in another way | 3% | 5% | 6% |
| I bought my house without financial support from parents or grandparents | 48% | 42% | 35% |
| I don’t currently own a home | 29% | 32% | 37% |
The survey revealed that the financial support parents and grandparents provided was crucial for a significant number of buyers. Of those who did receive monetary aid from parents and grandparents to buy a house, 58.3% of Australians, 44.5% of Americans and 56.3% of Canadians said they would not have been able to purchase a house without financial support from parents and grandparents.
For those who don’t currently own a home, Australian renters were slightly more confident they could buy a house on their own without the bank of mum and dad at 32%, while Canada was 30% and America was 29%.
However, across the board most renters weren’t planning on buying a house anyway, with 56% of Americans, 47% of Canadian and 42% of Australian renters saying they weren’t planning on buying a house, as the table below demonstrates.
| Do you think you’ll need financial help from your parents/grandparents to buy a home? | Australia | USA | Canada |
|---|---|---|---|
| Yes, I will not be able to purchase a home without their financial support | 26% | 15% | 23% |
| No, I think I will be able to buy a home without their financial support | 32% | 29% | 30% |
| No, I don’t plan on buying a house | 42% | 56% | 47% |
The survey asked respondents if their parents or grandparents provided any other monetary help, such as lending or gifting money, or covering some regular expenses or bills. Overall, Canadian parents were more likely to give some kind of financial assistance, while Australian parents were less likely – 37% vs 23% respectively. A third of American parents and grandparents offered some kind of financial support to their adult children.
The most common kinds of financial support were to lend money, with the agreement it would be paid back, followed by giving money as a gift every now and then for a big expense.
Australian parents that supported their adult children financially were more likely to give a gift than a loan, while North American parents surveyed were more likely to lend money with a private agreement that it gets repaid.
Note: respondents could select multiple ‘yes’ options, while the ‘no’ option was exclusive. This means that percentages do not add up to 100.
| What other financial assistance have you received from parents/grandparents? | Australia | USA | Canada |
|---|---|---|---|
| They have lent me money with the agreement I pay them back | 10% | 16% | 19% |
| They have given money as a gift for big expenses | 13% | 16% | 15% |
| They send money regularly to help with recurring expenses | 3% | 7% | 8% |
| No, I don’t receive financial assistance | 77% | 67% | 63% |
Whether or not you receive financial support from parents or grandparents to buy a house, comparing home loan options through a broker could help you get a mortgage and become a homeowner.
Eligible Australians can use Compare the Market to compare and apply for home loans from a range of lenders, and it can help in several different ways. Stephen Zeller, Compare the Market’s General Manager of Money, explains.
“Our team of mortgage experts can guide people from beginning to end, starting with financial assessments, loan applications, and some steps of the house buying process,” says Mr Zeller.
“We have a number of tools that can help people prepare as well, like credit score checks, borrowing power calculators and property reports. Having tools and someone by your side can make a world of difference.”
Compare the Market commissioned PureProfile to Survey 1,012 Australian, 1,010 Canadian and 1,013 American adults in February 2025.