Growing Real Estate Trend – More Families Are Contributing to Their Grown Children’s Downpayment – Analysis
CTV News recently published an article talking about the increasing amount of older generations gifting their children with the downpayment funds required to purchase a home.
As housing prices continue to rise, especially in our corner of Canada, we are seeing a dramatic increase in this trend. Why? Simply put, most people cannot save the huge amounts required for the downpayment on a home. Additionally, the higher mortgages required are tougher to qualify for, thereby requiring more downpayment, or a strong co-signor, to qualify.
As the article states, this trend now accounts for around 40% of downpayments for new and existing homebuyers, up from 20% or thereabouts in 2015.
At Olympic Mortgage, we deal with different family members all the time. We understand the sensitivities that exist when dealing in these scenarios, and are extra cautious in ensuring all parties involved feel comfortable with the transaction. We take the time to talk to all parties involved to ensure that everyone has a good grasp on the financing and what everyone’s responsibility is, before the mortgage goes through, and after.
For all your mortgage needs, we are your Victoria Mortgage Pros!
To read CTV News’ full article on the topic, click below.