In the face of rising housing prices and increased borrowing rates, a significant majority of Canadian homebuyers are turning to their families for financial help with down payments, a recent survey reveals. According to the 2024 Canada Housing Market Report by Zolo, nearly 70% of participants admitted to using money from family members to finance part of their down payments in 2023.
The survey, which included responses from 800 Canadians who purchased homes last year, indicated that 48% of buyers received help from parents or other relatives, while 20% benefited from inheritances. Additionally, the trend of co-ownership is growing as buyers combine resources with family or friends to afford properties in competitive markets.
Mortgage experts caution that while joint ownership can provide an entry into the housing market, it also introduces potential complications, such as disagreements over property sales or changes in personal circumstances. They recommend legal advice to navigate these issues effectively.
Furthermore, more Canadians are shopping around for favorable mortgage rates to ease financial pressures, with an increasing number turning to mortgage brokers. Despite these strategies, many are compromising on key home features, like location and size, to find affordable housing options.