Wondering How You Can Help Your Child When it Comes to Buying A Home?

Wondering How You Can Help Your Child When it Comes to Buying A Home?

As a busy Oakville realtor, I hear from people all the time that they’re worried their children will never be able to afford to buy a home. It seems to be a common topic of discussion with home prices continually rising while requirements for down payments remain out of reach for many.

Whether you think your children will be interested in living in Oakville or another part of the GTA or would prefer to settle down in a smaller town like Guelph, the thought of buying a home as a young person just starting out can certainly seem overwhelming.

How Parents & Grandparents Can Help the Next Generation

Having the means to help your grown children or grandchildren buy real estate is a blessing and a luxury. However, before you hand over cash or sign on the dotted line, it’s important to take time to explore the best options for everyone involved. 


Based on current home prices it shouldn’t be surprising to hear that most young people receive some kind of homebuying assistance from their families.

More specifically:

  • Receiving a cash gift. Families are providing first time home buyers with a cash gift substantial enough to serve as a down payment.
  • Receiving a gifted down payment. This can help home buyers secure the financing they need in order to make an offer on a home. Parents or grandparents sign a gift letter for the financial lender that says the funds are gifted and repayment is not required.
  • Getting a co-signer. This means that parents or grandparents assume a shared legal responsibility and would be held accountable for the mortgage if their child/grandchild is unable to uphold payments.

What To Consider Before Offering Financial Assistance

As with any real estate or financial transaction, do your due diligence. Being able to help your adult child can be a positive experience, but that doesn’t mean practicality and a risk analysis shouldn’t be part of the equation. 

Here are some things you’ll need to consider:

  • What will this do to your own financial security? 
  • Are you setting a precedent? Depending on how many children or grandchildren you have, can you help each of them equally? 
  • Even if you can help with a down payment, will your child or grandchild reasonably be able to handle everything else that comes with homeownership? 
  • Is anyone else involved? If your child is going to be living with a partner, be aware that this person will have rights to the property in the event that the relationship ends. Additionally, if you provide a down payment, are your child’s in-laws co-signing the mortgage? While it may feel impersonal, getting the support of a real estate lawyer can help avoid future complications.

First Time Home Buyers Need Sue Heddle Homes

There is so much that goes into finding your first home. From getting your finances in order to knowing what type of space you’re after, it can feel overwhelming at best. Sue Heddle Homes has over 10 years of experience helping first time home buyers navigate the real estate market and find a home that works for them. With expert market knowledge, top notch negotiating skills and a dedication to each and every client, you can count on Sue Heddle and her team to make the experience as positive as possible. Ready to start house hunting? Call Sue at 416-906-7998 and let’s get started!


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