How Parents Can Help Their Children Purchase Their First Home
Purchasing a home in today’s market can be daunting for many young individuals due to soaring home prices and the high cost of living. As parents, there are several ways you can assist your children in achieving their dream of owning a home. Here are some practical ways you can support them in their first home purchase:
- Gift of Funds: Consider gifting your children money towards the down payment or closing costs. This financial boost can make a significant difference in their ability to afford a home. If you don’t have cash available for this we can look at an equity take out on your property to access the funds needed.
- Co-Signing or Guarantor: If your children are struggling to qualify for a mortgage on their own, you can offer to co-sign the loan or act as a guarantor. This can help them secure a mortgage with more favorable terms. (note there maybe future tax implications for this with changes in Revenue Canada reporting).
- Financial Advice: Share your knowledge and experience in managing finances and investing. Help them create a budget, improve their credit score, and understand the financial implications of homeownership.
- Homebuying Education: Guide your children through the homebuying process. Offer advice on selecting the right property, negotiating the purchase price, and understanding the terms of the mortgage. Send them our way so we can share my Home Buying booklet with them.
- Investment Assistance: Consider investing in real estate together with your children. This could involve purchasing a property as an investment that they can eventually live in or use as rental income.
- Investment advise: Ensure you put them with a financial advisor (we have a great one) to start their First Time Home Buyers savings account to get the benefits of the tax incentive and help them save for future home purchase.
By providing financial support, guidance, and knowledge, parents can play a crucial role in helping their children navigate the challenges of purchasing their first home in today’s competitive market. With your assistance, you can make the dream of homeownership a reality for your loved ones.
Download my mortgage calculator: https://maapp.ca/app/patricia-mckean