Many Young Ontarians Need Help From Their Parents To Buy A Home & The Average Gift Is $73K
Better call up your mom if you want to buy a home.
If you're a young Ontarian, chances are you've been hearing about how difficult homeownership is. But, you can't stay in your parent's basement forever.
According to a new poll by the Ontario Real Estate Association (OREA), 4 in 10 parents are stepping in to help their children (aged 18 to 38) buy a residential property, and they aren't just offering moral support and advice.
Instead, 44% of the parents polled admitted to dipping into their own savings to help support their child's dream, with 15% of them borrowing from their retirement funds and investments.
"On average, those who loaned money lent $40,878, while those who gifted money gave $73,605. For parents of those young adults who do not own property, 91% of them say that it is important that their children be able to eventually buy a home," an excerpt from the report reads.
The generosity of parents can largely be attributed to their recognition that it's much more challenging to buy a home today than when they were younger.
OREA reports that contributing factors include high housings prices, unaffordable down payments, fewer homes, a less secure job market, and a more significant cost of education
"Ontario's parents have seen first-hand the benefits of homeownership on neighbourhoods: it fosters vibrant and stable communities, improves the quality of life, and has been the bulwark of Canada's middle class for generations, so it is not surprising that they want the same for their children."