IS THE BANK OF MUM AND DAD BREAKING THE MARKET? EXPERTS DIVIDED!

Economists are split not just on interest rates, but on whether parents are quietly rewriting the property playbook.

In Finder’s latest RBA Cash Rate Survey, economists and experts weighed in on the state of the economy, with 86% predicting the RBA will hold steady at 3.60%.

But when it came to the so-called bank of mum and dad, things got contentious.

According to Finder’s First Home Buyer Report 2025, almost one in five first-home buyers (17%) now rely on parental cash to get on the property ladder, nearly double the figure from 2022.

That’s about 20,000 first-time buyers each year using family money to leapfrog the saving struggle.

Graham Cooke, Finder’s head of consumer research, said parental help has quietly become “a crucial step to home ownership for many Australians.”

“For many young buyers, purchasing property without assistance feels almost impossible,” he said.

“Those who can lean on mum and dad are typically entering the market not just sooner, but in a much stronger position.

"This adds to the inequality in the market for those who don’t have this option.”

It’s a sentiment echoed by nearly one in three experts (31%) who believe family help is warping the market.

Scott Kuru from Freedom Property Investors said,

“It's clear many younger people are only getting into the property market with help from older (and usually cashed-up) family members.”

Economist Mala Raghavan from the Tasmanian School of Business and Economics added,

“With a limited housing stock in the market, any demand-driven actions are bound to distort house prices.”

Michael Yardney, from Metropole Property Strategists, said the shift is splitting the market in two. “

This is creating a two-tier market of the haves and have-nots, families with property equity already and others,” he said.

University of Sydney’s Stella Huangfu agreed, saying the extra cash gives some buyers an unfair edge. “This pushes up prices, especially in already competitive areas.

It also deepens inequality, as those without family support are left further behind.”

But not everyone’s crying foul. Tim Reardon from the Housing Industry Association argued that family help isn’t a distortion at all; it’s a correction.

“Parents are not a distortion; they are correcting the market distortion created by the severe lending restrictions imposed on first home buyers,” he said.

Veteran economist Craig Emerson agreed, noting: “There have long been mums and dads.”

Meanwhile, another policy lever is raising eyebrows.

Two-thirds of experts (65%) said the government’s expansion of the First Home Guarantee Scheme will tempt buyers to take on more debt than they should, a worrying thought as household budgets remain tight.

So as the RBA braces for its next move, the cash rate might be holding still, but the debate over who’s really driving the housing market is anything but settled.

For now, the only certainty is that the great Australian dream increasingly comes with a parental signature and possibly, a generous transfer.