GETTING HELP FROM MOM AND DAD

With housing prices climbing faster than incomes, many first-time buyers rely on financial support from their parents. The “Bank of Mom and Dad” has become one of the most common sources of down payment funds in Canada — and the trend continues to grow as affordability challenges rise.

Here’s how families are navigating this strategy effectively 👇

1️⃣ Parental gifts are becoming a major source of down payments

Rising home prices and wage gaps mean more young buyers need financial help.

✔️ parents contribute lump-sum gifts

✔️ funds boost the buyer’s down payment

✔️ improves mortgage qualification

This support often makes the difference between renting and owning.

2️⃣ Some parents purchase investment properties for long-term advantage

Higher-net-worth families are taking a strategic approach.

✔️ parents buy the property

✔️ tenants cover the mortgage

✔️ property value increases over time

Parents can later refinance and gift a portion of the equity — created largely by rental income, not their own savings.

3️⃣ Refinancing allows families to unlock equity tax-efficiently

Once the property appreciates, parents can access its increased value.

✔️ refinance the investment property

✔️ pull equity to gift to their children

✔️ keep generating rental income

This approach helps fund retirement while helping children enter the market faster.

4️⃣ Demographics are changing — and strategies are evolving

Families want to keep children close and maintain similar lifestyles.

✔️ many parents earn $200,000+

✔️ net worth often exceeds $2M including real estate

✔️ focus is on long-term financial security

Gifts that were $10,000 in the 1980s now range from **$200,000 to $500,000** in major markets.

5️⃣ Parental help is more common than most people realize

The numbers show how significant this trend has become.

✔️ 40% of first-time buyers in Vancouver receive parental support

✔️ 22% of first-time buyers in the rest of Canada receive help

✔️ support amounts are increasing annually

This assistance often determines whether buyers can break into competitive markets.

💬 Final Thought

The “Bank of Mom and Dad” has become a key part of today’s housing landscape. With rising prices and limited affordability, strategic planning between generations can create long-term financial advantages for the entire family.

If you’d like guidance on structuring gifted down payments or multi-property wealth strategies, send The Frontline Mortgage Group a message anytime.