Looking to apply to the bank of mom and dad, please.
Buying a home in Ontario can be expensive. In fact, it's apparently so hard to break into the market that some Ontarians are even taking out loans with the "Bank of Mom and Dad."
According to a report by IG Private Wealth Management, just under one-third of Ontario parents (30%) are willing to provide financial support to their kids to secure their homes in the province.
"As housing values in most Canadian cities show little willingness to abate, the support of parents is becoming increasingly important," the report reads.
Moms and dads across Canada are reportedly gifting their children an average of $145,000 to help them snag their dream homes. The report also points out that nearly three out of four people surveyed have either already done this for their children, or are willing to help out their kids buy their first home.
Many first-time homebuyers in the 6ix have tapped their living ATMs (ahem, their parents) for help with affording a down payment. A report by CIBC revealed last month that — on average — Torontonians were given over $130,000 to help cover the cost of their dream home.
But with Toronto's house prices being so astronomically high, it's hard to blame them. Recently, Toronto was ranked as one of the most unaffordable cities to live in across North America.
Earlier this month, the National Bank of Canada's Housing Affordability Monitor report pointed out that it will take over 27 years for prospective Toronto-based homebuyers to even afford the down payment of a representative home in the city, which is priced at $1,195,754.
This article's cover image was used for illustrative purposes only.
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