A CIBC Capital Markets analysis shows 30% of first-time homebuyers received a down payment “gift.” Not a little help either, but it was the primary source of funds for the majority that received a gift. It’s now occurring at such a scale, it might be driving home prices higher.
Nearly 30% Of Canada’s First-Time Home Buyers Received A “Gift” For Their Down Payment
Buying your first home in Canada isn’t hard. You just work hard, save up, and then ask your parents for the money, right? Well, that’s how it works for a large share of first-time homebuyers today.
The share of first-time homebuyers receiving a “gift” for a down payment is huge. Nearly 30% of first-time homebuyers received a gifted down payment. The share increased by almost 10 points since 2015, which is a huge demographic shift. Imagine if an extra one in ten adults under 40 needed their parents to help them cross the street? It would be obviously visible, not just a fringe amount. Now that’s not the total, just the increase in people who received help. It sounds small, but it’s huge…read more.