Is helping children buy their first home becoming ‘the next parental responsibility’?
It’s the type of family support that some people will be proud to give and others will be jealous they never got, but a new survey shows first-time home buyers are getting on average more than $10,000 from family members.
The housing market is full of anecdotal tales of people receiving help from their parents to push them over the top in a bidding war or children getting just enough cash for a 20% down payment which helps them avoid costly mortgage default insurance.
But the study from the Canadian Association of Accredited Mortgage Professionals due to be released on Tuesday, a portion of which was released in advance to the Financial Post, shows that on average first-time buyers are putting down 21% of the purchase price and that on average about 13% of that money comes from family.
The latest data from the Canada Real Estate Association puts the national average sale price at $419,699. That would make the average down payment for a first-time buyer $88,137 and mean family was chipping in $11,458.