Many Young Ontarians Need Help From Their Parents To Buy A Home & The Average Gift Is $73K

If you're a young Ontarian, chances are you've been hearing about how difficult it is to buy a home right now. But you can't stay in your parents' basement forever.

According to a new poll by the Ontario Real Estate Association (OREA), many young homebuyers are getting help from their parents — and they aren't just getting moral support and advice. 4 in 10 homeowners aged 18 to 38 got financial help from their parents to buy their homes, either through loans or outright gifts.

44% of the parents who helped their children financially dipped into their general savings to help support their child's dream, while 15% of them took the money out of their retirement savings. 16% got the money by taking out a mortgage (or second mortgage) on or even selling or downsizing their own home.

"On average, those who loaned money lent $40,878, while those who gifted money gave $73,605. For parents of those young adults who do not own property, 91% of them say that it is important that their children be able to eventually buy a home," the report reads.

The generosity of parents can largely be attributed to their recognition that it's much more challenging to buy a home today than it was when they were younger.

OREA reports that contributing factors include high housings prices, unaffordable down payments, a less secure job market and a higher cost of education.

"Ontario's parents have seen first-hand the benefits of homeownership on neighbourhoods," said Tim Hudak, CEO of OREA. "It fosters vibrant and stable communities, improves quality of life, and has been the bulwark of Canada's middle class for generations, so it is not surprising that they want the same for their children."

This article's cover image was used for illustrative purposes only.