Since the housing boom, when about 60 per cent of first home buyers used funds from their parents, the financial environment has changed dramatically.

Markets are down, interest rates are up and banks are starting to look shaky.

“The number of first home buyers being assisted by the Bank of Mum and Dad is falling through the floor,” according to Digital Finance Analytics.

Only about 10 per cent of first-time home buyers now use funds from their parents and the legacy of loans done at the height of the property boom were “now coming home to roost”.

The number of Bank of Mum and Dad first home buyers has dropped dramatically along with the overall number of home buyers in this category.

“It’s just over 5000 now. At the peak back in 2021 we had 30,000,” DFA’s Martin North said.

The proportion of people looking to Mum and Dad is down to 30 per cent from 60 per cent at the peak.

The average size of the deposit help has fallen from $120,000 to $102,000, although this varies depending on location.

However, parents still have about $38 billion in outstanding loans to their children and the Bank of Mum and Dad sits 10th in the market, just behind Suncorp.

“A lot of people who got help from mum and dad are finding the value of their property is reducing and the pressure on the mortgage is rising,” North said.

“Some parents who saw are considerable run-up in their equity because property prices rose are now seeing that the reverse is also true as the value of their property is decreasing.

“Of course, the value of their superannuation and their other investments is also down so the whole value equation when it comes to parents feeling comfortable with their own wealth position as they get into older age is in question, too.

“I think the Bank of Mum and Dad is definitely on the decline at the moment.”