First-time buyers who save for their property deposit themselves are less likely to struggle to meet their mortgage repayments than those who loan their deposit money from their parents.
This is according to a new report from the Reserve Bank of Australia, which found that people who have saved over several years for a deposit for a property are likely to have gotten into good financial habits that mean they will meet their home loan repayments.
In contrast, first-time property buyers who have been given the money for a deposit by their parents do not necessarily have these habits in place and are therefore more likely to fall into debt when it comes to paying back their mortgage.
Overall, the number of renters entering into the Australian property market as buyers has fallen since the early 2000s, when around seven per cent of renters became buyers each year. This has now fallen to just 4.5 per cent.
The report authors explained: "Higher deposit requirements are acting to filter out less financially secure households from home ownership.
"While saving a deposit is a stretch, it is also a sign of financial discipline that is associated with fewer subsequent difficulties."
Figures from the Reserve Bank show that some nine per cent of 25 to 34-year-olds with a mortgage down under are currently in debt with their repayments, but this is down from 12 per cent almost a decade ago, at the peak of the financial crisis.
The research also showed that dramatically rising property prices during this period mean that the average first-time buyer is investing 330 per cent of their income in buying a home, up from 230 per cent 15 years ago.
What's more, people who take the leap into home ownership tend to earn 70 per cent more than renters and are twice as likely to be tertiary educated. This is attributed to improved access to higher education across Australia from the early 2000s onwards.