In today's challenging housing market, many young Canadians face significant hurdles in achieving homeownership due to high prices and inflexible lending requirements. To help their children overcome these challenges, parents can explore gifting some of their home equity to assist with a down payment. This article explores the benefits of this approach and why it can be a wise decision for both parents and children in Canada.
Rising home prices, particularly in major cities like Toronto and Vancouver, have made homeownership increasingly unattainable for many young Canadians. High rental costs and student loan debt further compound the issue, making it difficult for them to save enough for a down payment.
Gifting home equity funds with HomeBridge involves transferring funds from the equity built up in a home via a Reverse Mortgage to the child to use for their down payment. In Canada, this can be done through a legal document such as a gift letter, which outlines the details of the gift. Your child’s mortgage agent will assist with any documentation needed.
Gifting home equity funds can be a powerful way for Canadian parents to support their children's homeownership dreams. By providing a financial boost, parents can help their children overcome the hurdles of high home prices and strict lending requirements. This act of generosity can have lasting benefits for both parents and children, strengthening family ties and creating a sense of security for the future.