Helping your child buy a house: when you should and shouldn't lend a hand

Overheated housing markets like those in Vancouver and Toronto may make headlines, but it’s not just those real-estate scenes that can pose a challenge for first-time buyers. For many Canadians, scraping together enough money for a down payment is a task that’s as monumental as it is drawn-out.

So, it’s not uncommon to hear of parents helping their grown children fund a home of their own. For some moms and dads, that kind support is part of a “living inheritance,” a chance to see their offspring make good use of what’s passed down to them. Others may be motivated by more practical reasons, wanting to see their kids to put their money toward their own property and not their landlord’s.

No matter what’s driving it, there’s plenty to consider when it comes to parents helping their grown children buy a home so that both parties can stay protected, legally and financially.

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