‘The bank of Mum and Dad’ dominating the lending market in Australia – AFR


Jennifer Hewett of the Australian Financial Review (AFR) reports on the 5th largest lender in Australia, lending around $65.3 billion – ‘the bank of mum and dad’. Hewett highlights statistics from a survey completed by Australian financial advisor platform, Mozo, which included 1,000 Australian applicants.

Mozo found 30% of parents (the equivalent to 1 million families), help their children buy their first home by lending them on average, more than $64,000. With a significant 2/3 saying they don’t expect to be repaid.

As per 43% of those surveyed, the most popular method of support, which is not on offer by other banks and is unique to ‘the bank of mum and dad’, is living at home rent-free. Most commonly, these children do so while they save for a home deposit, however, it may be their parents loosing out with the surveyed parents saying this arrangement is worth an estimated $25,000.

However, directly assisting with their child’s home deposit still remains to be the most popular form of assistance for ‘the bank of mum and dad’, with 41% choosing to do so.

Hewett further goes on to highlight the details highlighted by Mozo when funding a home deposit. Identifying $42,343 as the average amount parents lend. With each state on average lending varying amounts, with NSW lending the most, which is $53,000.

Furthermore, Mozo estimates on average parents in NSW lend an estimated $88,250 per family and parents in VIC $63,000.

Hewett puts it into perspective by highlighting in 1986, on average Australians paid $76,278 for a house, which was the equal to 4.4 times their annual income of $17,321. However, in 2016, the average house price rose to $547,714, equivalent to 6.9 times the average income ($78,832).

Finally, Jennifer Hewett sums it up for the big brother banks of Australia. Offering various pieces of advice to better serve their customers and be proactive. Because after all “removing ATM fees is a classic case of too little too late.” With Treasurer, Scott Morrison also affirming banks should be looking to reduce credit cards fees.

Subscribe to Australian Financial Review to access the article in Full!

Credit: Jennifer Hewett




Credi’s #WhatTheLoan – To Help Pay for Bills

Another week has gone by and another #WhatTheLoan has arrived. This week a Credi user built a loan is to “help pay for bills.”

pay for bills





Relationship Lending Fintech Platform Goes Global –

Elizabeth Barry from writes of Credi’s significant growth and expansion in ONLY 5 months, by announcing their up-and-coming international launch to New Zealand.

The month of September has been a significant month in terms of milestones for Credi, the Perth fintech company. With the announcement of their international rollout, people in New Zealand and soon the United Kingdom and the United States will have access to the platform. Look out New Zealanders, you’ll have access to the platform on the 23rd of October.

Since their launch in April of this year, Credi has 1300 users on the platform who have lent or borrowed $32 million from family, friends, and colleagues.

Tim Dean, the founder, and CEO of Credi talks of the company’s excitement to go global.

“The product works in multiple jurisdictions. Given that we’re not a lender, we’re a software company, we can facilitate software-based transactions in a number of territories. We had always planned to go to New Zealand next due to proximity and similarity in terms of market profile,” he said.

Credi also hopes rollout their first television campaign in Australia and New Zealand in mid-October. Having grown and expanded with no current commercial marketing, CEO Tim Dean is hoping for a greater response from both lender and borrower.

“Currently, Credi is lender centric, with a 60/40 split between lenders and borrowers using the platform,” he said.

“However, we expect that some stage in the future there will be an equalisation between borrowers and lenders. For example, a millennial might go to a parent with a problem but with Credi, they go with a problem and a plan with the platform to help solve that.”

With university fees on the rise and the crisis of housing affordability, Credi can be the next big step to help millennials ask for help from ‘the bank of mum and dad’ without the risk of ruining their relationship. offers people a simple, organised way to manage and formalise a loan between family and friends. What once was based on a handshake and offers people a simple, organised way to manage and formalise a loan between family and friends. What once was based on a handshake and trust can now be safeguarded with Credi. What once was based on a handshake and trust can now be safeguarded with Credi.

Read the article in full here!

Credit: Elizabeth Barry


50% of graduates continue to rely on the Bank of Mom and Dad

graduates rely on bank of mum and dad

These days parents are finding that the nudge to encourage their children to achieve financial independence is turning into a firm push – even if they are graduates and have acquired a full-time job.

The Arizona Pathways to Life Success study of 1,000 young adults (who were participants of the University of Arizona) found that 50% of graduates between the ages of 23 and 26 continued to financially rely on their families.

With the unemployment having risen, it’s no surprise many recent graduates were seeking financial support. In April, the rate of unemployment between 20 and 24 was 10.6 and for those between the ages of 25 and 34, it was 6.6. These rates were higher than the overall unemployment rate which was 5.8!

The Arizona study further found that of those graduates that were employed full-time, 48.9% were still getting financial aid from the families.

Certified financial planner Sheryl Garrett of her own company Garrett Planning Network further goes on to discuss whether parents are actually helping their children and or enabling them.

Read the article in full by clicking below.

Credit: Kelli B Grant






Credi’s first blog series – 10 blogs over 10 weeks

credi's blog series, the relationship lending platform brings you its first blog series! With the help of some very talented University of Notre Dame students, Credi will be delivering you 10 weeks of 10 fantastic blogs.

Share their stories, join in their journies, test their tips and overall experience lending from another perspective.

View our current blogs HERE and keep an eye out for more to come!



Credi’s #WhatTheLoan – To Pay for School Fees

We all lend to family and friends in need. Do you have any loan stories to share? #WhatTheLoan is back again! On Credi’s platform, we had a lender help pay for school fees.

pay for school fees



Forming loan agreements with family members and friends

loan agreements

Loan agreements become tricky when it involves lending or borrowing from family or friends. We would all like to help out the people we love in their times of need but sometimes the risk of losing the money AND the relationship stand in our way. outlines important factors to consider when lending borrowing from family or friends. Statistics from the Federal Reserve Board Survey of Consumer Finances highlighted that overall $89 billion is loaned between family and friends each year in the United States.

Loans between family and friends is a popular way of receiving financial support. This form of lender also offers lower interest rates and usually the exact amount that is needed. However, one unfortunate aspect when borrowing from loved ones is that your relationship is on the line and can potentially be damaged.

That is why suggests you protect those relationships and build on that trust by forming a long contract. Regardless of your relationship with the other party, this contract will help protect both parties in the case of a disagreement. also believes that that fact of whether you know the other party or not doesn’t matter. Lending or borrowing money entails obligations and responsibilities and both parties should be accountable.

That’s where can help these two friends of family members. Our platform helps form an agreement for people by people, not by institutions for people. Credi helps safeguard trust that you share with your friend or family member. Our platform helps protect your relationship and helps you get on with life.

Read the article in full by clicking below!

Credit: Bill Fay




Don’t be in debt – Formalise loans between family and friends

Turn the informal process of lending to family and friends into a simple and easy agreement by using Credi. Document, formalise and manage your loan with friends and family members all in one place.





Eleventh largest unregulated bank in Australia

eleventh largest unregulated bank

Most first home buyers are turning to the eleventh largest unregulated bank for financial support when purchasing their residential property. Who is this unregulated lender you ask? The bank of Mum and Dad!

The bank of Mum and Dad have become a crucial factor in helping first home buyers enter the highly expensive market. Recent stats show that this bank is ahead of AMP Bank, HSBC and many community banks. With an estimated $16 billion worth of transactions with the bank of Mum and Dad, which continues to grow by the day.

Author, Martin North, states that more than 50% of first-time buyers required financial support from their parents, whether it be a gift or loan, or other related help. This is believed to be due to the accessible equity held by those owning property. This, however, is another reaffirms the inter-generational issues, such as the wealth gap, as well as the risks within the property market.

Read the article in full here!

Credit: Martin North




Parents becoming key support for millennials struggling to enter the property market

parents support struggling millennial children

The bank of mum and dad are playing a key role in helping their struggling millennial children purchase their first homes writes CBC News.

A significant number of millennials in Canada plan to buy a home soon, however, they believe they are a long way from being financially ready to enter the market. HSBC commissioned  Kantar TNS to complete a global survey of 9,000 adults, in the homes of capturing home buying attitudes globally.

The result gathered showed that 1/3 Canadian Millennials currently own their own home and amongst the 2/3 that didn’t 82% stated they intend to buy within the next 5 years.

However, the most staggering statistics was that 73% of these individuals wanting to buy in the next 5 years hadn’t yet started saving for a down payment.

Numbers suggest that parents playing a key role in first home property purchases. With more than 1/3 of the sample group saying they have received financial support from the bank of mum and dad to pay for housing costs.

Credit: Pete Evans