In some Canadian cities, young homebuyers are finding themselves priced out of the market and unable to purchase a home without help from family members. In fact, a recent report shows that as many as 40% of parents have given their children financial assistance to buy a home. Whether this was through direct monetary help, or by giving their kids early inheritance, their willingness to assist them in buying a home, has doubtless been a lifeline for many young people who simply couldn’t get together enough funds to make a purchase alone.
How are parents able to help their kids buy a home?
Having benefitted significantly from rising home prices in recent years, older people have found themselves in the position where they’re comfortable taking some equity out of their own house, to help their children buy theirs. In some cases, parents have given their kids an early inheritance.
This, along with the belief that owning a home holds real value, has led to many Canadian parents doing what they can to ensure that the younger generation have the same opportunities to own their own home, as the older generation.
Do young people really need financial help from their parents to buy a home?
At the moment, yes! With house prices throughout Canada having risen so much of late, many younger people simply cannot afford to buy a home, and the situation isn’t getting any better. In fact, experts have stated that we’re in the middle of a housing affordability crisis, that’s predominantly driven by a severe lack of supply, and a huge increase in demand.
Canadian strongly believe in homeownership
Other surveys recently conducted have found that the majority of homeowners throughout the country still believe in the importance of owning your own home, with many going so far as to say that buying their home, was one of the most significant decisions they’ve ever made because it’s given them economic confidence and financial stability.
The importance of working with a mortgage broker
Whether you’re helping your child purchase their first home, or are buying a new home of your own, understanding the market and getting to grips with the different mortgage options available to you, can be a little bewildering, even if you’re not a first time buyer. By working with a mortgage broker from the outset, however, you can find a mortgage that’s right for you and your circumstances, and even speed up the entire process.
For Canadians and their kids, home ownership is hugely important, and getting a great deal on your mortgage so that you can achieve economic confidence, is more likely to be achieved when you seek professional help from an experienced mortgage broker in your area.