Getting into your first home doesn’t always mean going it alone. If your parents or someone close can help, the Bank of Mum & Dad might be your secret weapon.
It could be a gift. A loan. Or even going guarantor. There are a few ways family support can get you there faster. The best part? Our friends at Resolve Finance have shared how even a little help can go a long way.
Here’s how it can work:
Guarantor Loan*
This is one of the most common ways parents help. It means your parents (or someone you trust) use the equity in their own home to guarantee part of your loan, usually your deposit.
- You may be able to buy with as little as 5% deposit
- You could avoid paying Lenders Mortgage Insurance (LMI)
Keep in mind: Your guarantor is taking on some financial risk. If you miss repayments, they could be responsible for that portion of the loan. It’s important everyone understands what’s involved.
A Financial Gift*
Some families choose to gift money to help with a deposit.
- No repayments needed
- Makes it easier to hit your deposit target
Tip: Lenders usually want to see that a gift is non-repayable and may ask for a “gift letter” confirming that.
A Family Loan*
If gifting isn’t an option, a loan from your parents or family could also work.
- Can be flexible with repayments
- Could mean you could make flexible arrangements to suit you and your family.
Important: Put the agreement in writing to avoid confusion or disputes down the track. Consider getting legal advice to protect everyone involved.

Is it the right option for you?
The Bank of Mum & Dad isn’t the right fit for everyone, and that’s okay. But if your family’s open to helping, it’s worth having the conversation. With the right structure and advice, it can be a smart stepping stone into your first home.
Not sure where to start? Chat with our partners at Resolve Finance and they’ll help you figure it out.

Not your path? No stress! There’s more than one way to be financially first-home ready.
Explore other options
**This is not financial advice and is general information. We recommend seeking assistance from a qualified mortgage broker to help determine what’s the right option for your financial situation. Lenders terms and conditions apply. Please note this is a guide only, this information may be subject to change.
All Financial services provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN: 65 079 545 378 Australian Credit Licence No. 385487
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