First-time buyers get leg-up from parents

Canadians are increasingly tapping the ‘Bank of Mom and Dad’ for home down payments, according to a recent study.

A record-number of Canadians are expected to accept help from their parents when buying a house this year in the wake of more stringent lending rules, according to RateHub.

According to states released by the financial tech company, 42% of BC-based buyers received help from relatives. A shocking 45% of Quebecers received help; 38% of Albertans; 33% of buyers in Manitoba and Saskatchewan; and 35% of buyers in Ontario.

Buyers in Atlantic Provinces, meanwhile, seem to be the most self-reliant when it comes to purchasing a home.
A mere 18% relied on help from family members when purchasing a home.

Of course, Atlantic Canada is generally home to cheaper real estate than its more western areas.

The expected increased reliance on parents to by first-time buyers is perhaps unsurprising, given recent mortgage regulation changes – including a mortgage rate stress test for insured mortgages, which now requires many buyers to qualify at a higher rate – that have made it more difficult for many Canadians to afford a home.

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From:  Real Estate Professional Magazine