EN - Real Estate

Nearly 1/3 Of Ontarians Rely On Mom & Dad To Help Buy Their First Home In The Province

Looking to apply to the bank of mom and dad, please.

Buying a home in Ontario can be expensive. In fact, it's apparently so hard to break into the market that some Ontarians are even taking out loans with the "Bank of Mom and Dad."

According to a recent Pollara Study report published with IG Private Wealth Management, about one-third of Ontarians (or 30%) will get some financial support from their parents to secure their homes in the province.

"As housing values in most Canadian cities show little willingness to abate, the support of parents is becoming increasingly important," the study reads.

Moms and dads across Canada are reportedly gifting their children an average of $145,000 to help them snag their dream houses off the market. The study also points out that nearly three out of four people surveyed have either already done this for their children, or are willing to help out their kids buy their first home.

Many first-time homebuyers in the 6ix have tapped their living ATMs (ahem, their parents) for help putting down a downpayment on their houses. A recent report conducted by CIBC revealed that - on average - Torontonians were handed about $130,000 to cover the costs of their dream home in the city.

But with Toronto's house prices being so astronomically high, it is sort of hard to blame them. Recently, Toronto was ranked as one of the most unaffordable cities to live in across all of North America. Sheesh.

To rub even more salt in the 6ix's proverbial real estate wound, the National Bank of Canada's Housing Affordability Monitor report pointed out that it will take over 27 years for prospective Toronto-based homebuyers to even afford the current median house which goes for $1,195,754.