Millenials turn to Mom & Dad For Help in Buying a Home

Young Canadians are increasingly receiving help from their parents in order to become first-time buyers in Vancouver and Toronto.

A study by lender HomEquity Bank shows that parents are keen to find out about reverse mortgages to release equity in order to give their kids a downpayment.

"Ten years ago, this topic rarely came up as most seniors were more concerned with remaining self-sufficient. And, first-time homebuyers were purchasing houses on their own. That's changed. Up to 30 per cent of my clients aged 60+ now want to discuss to what degree they can help their adult children financially," explains Rona Birenbaum, financial planner and founder, Caring for Clients.

HomEquity says that by using a zero-rate mortgage registered in the home, the parents’ funds are protected and they can later choose to cancel the mortgage with the funds considered as a gift.

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Using A Real Estate Broker Just Makes Good Sense-Diane Plant, Broker Agrees

Using a Real Estate Profession Guides Would-be Buyers through the Process

Aside from ensuring that a sale goes smoothly, the broker fulfills the crucial duty of guiding would-be buyers through Canada’s complex and rapidly-changing housing market in the first place.

 

As discussed by the Guelph Mercury staff in a recent piece published on their website, a real estate broker is uniquely positioned to assist “with all the details, including buying rules and the best neighbourhoods to choose in her key markets.”

 

The piece noted that an intimate knowledge of the industry is the best thing that a housing professional can bring to the table.

 

“[A broker] can help potential buyers … make the most of the buying experience when moving to the country by answering questions such as which features [are needed] nearby and how many family members plan to live in the property,” Guelph Mercury wrote. “There are some properties that already have separate living spaces set up, but you'll need to consider the rules of each region about adding separate dwellings for others.”

 

Aside from familiarity with existing regulations and tax laws, a real estate professional can navigate clients to the exact property that they need.

 

“[A broker] can collect all of your information and help you find a home that fits the description of what you're looking for, and within the amount of money you have to spend,” the article said. “If you're new to Canada and buying a home, [he or she] can help you break down any barriers that are standing in your way of becoming a homeowner.”

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