The financial support from parents, often referred to as the “bank of mum and dad,” can vary significantly from one family to another. On average, recent reports indicate that parents may gift anywhere from $50,000 to $100,000 to help their children buy their first home. Factors that influence this amount include the parents’ financial situation, the local property market, and the overall cost of housing in the area. In some cases, parents might also assist with a loan or a co-signing arrangement rather than a direct gift. It’s essential for both parties to have clear communication about expectations and to document any gifts for tax purposes to avoid any future misunderstandings. The support from parents can significantly ease the burden of a hefty deposit and help first-time buyers enter the property market more comfortably.
