Bank of Mom and Dad Expected to Fund Nearly Half of Upsizers and First-Time Buyers
According to a 2015 Home Buying Report released, Canadian homeowners looking to "upsize" will be turning to their parents for financial help that is higher than the amount first time buyers are hoping to get from their family.
In fact, 42 per cent of current home owners looking to upsize their home are expecting financial help from family. Another 42 per cent of first-time buyers are also expecting their parents or relatives to help pay for their first home, up 12 percentage points from last year.
The BMO report also found:
- Buyers looking to upsize plan to spend $473,900, while first-time buyers' budgets have decreased slightly to $312,700 - down from $316,100 in 2014
- Upsizers plan to put down 26 per cent, or $123,214, as a down payment, while first-time buyers plan to put down 19 per cent, or $59,413
- First-time buyers who are depending on family help expect family to pay an average of 12 per cent of the average cost of a home towards their purchase; current home owners looking to upsize who are depending on family help expect family to pay an average of 20 per cent of the average cost of the home
- 50 per cent of upsizers and 40 percent first timers who are depending on this help say they would not be able to afford a home without this financial help from family
If you want to help your kids get into their first home, talk to me. I can help you and your family secure financing for a home!