"Bank of Mum and Dad" now being targeted by big banks
DID mummy and daddy buy you that house?
Maybe not, but they probably helped.
And if you live in a major city, then there may have been no other choice.
Welcome to the new normal of Australia's housing market where even the nation's biggest lenders are conceding that yes, the so-called "Bank of Mum & Dad" is the only way that many will ever be able to own their own home.
FROM THE ARCHIVES
The understanding that established home-owners were now helping to finance or going guarantor for their children's homes has been widely understood but now it has been confirmed.
Banks are now seeing the Bank of Mum & Dad as a chance for opportunity.
Sydney Morning Herald reports banks are now even offering specific home loans that put parents at lower risk if their children default on a loan.
NAB figures suggest 8% of first home buyers taking out a loan for a first home are supported by family.
Westpac too has confirmed that its "guarantee product" aimed at those going guarantor has gone up 9% at St George, which is a larger increase than its usual loan growth across the entire bank.
The median house price in Sydney earlier this year was $995,804. In Melbourne it's closer to $600,000.