More Vancouver children than ever can look forward getting a leg up from their parents when it comes time to buy their first homes, according to a BlueShore Financial report released June 3.
A survey of families around the Lower Mainland found that 76% of parents intend to help their children with their mortgages. The most common method of doing so is providing them with a loan for a down payment. The most common amount that survey respondents said they would spend was between $100,000 and $199,000.
"This survey confirmed what we are seeing: an increasing number of our clients want to assist their children with home financing," said BlueShore Financial president and CEO Chris Catliff.
This trend will place an increasing burden on the parents' finances. The survey found that in the past, helping kids with buying homes did not have a negative impact on parents' financial situations but the most common amount spent was less than $25,000 only a fraction of the hundreds of thousands of dollars young families expect to spend and those with children today expect that it will cause some form of hardship.
"This points to a need for financial planning. Both parents and children who are looking to buy a home need a strategy to achieve this goal without sacrificing their long-term financial wellness."
More than half of all respondents (58%) said that if they don't help their kids this way, home-buying will be delayed.
Watch lawyer and REW.ca contributor Richard Bell of Bell Alliance give advice on being the Bank of Mom and Dad.