The next round of parental finance support to adult kids: Help paying the mortgage

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Parental help with home buying has been around for generations, but the dollar amount of assistance has lately grown to huge proportions

last fall said close to 30 per cent of first-time buyers received an average of $82,000 from their parents; in 2015, almost 20 per cent of first-time buyers received an average $52,000.

Any time I write about financial challenges faced by young adults, I hear from older boomers and seniors who endured the surge of inflation and interest rates of the early 1980s and say it was as bad as, or worse, than anything today. Month-to-month mortgage affordability is by far the bigger issue for recent buyers. Monthly payments for some variable-rate mortgages have already risen. Other variable-rate mortgages are comingwhere their payments are adjusted higher. Up until now, changes have been in the background, with lenders using more of payments to cover interest and applying less to principal.

 

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'There are more than a million empty homes in Canada and on any given night at least 35,000 Canadians are homeless.'

Well, they WERE the ones who happily supported the policies that set us up in this mess....

Whatever…most of us have enough problems paying our own mortgage. The reality is that there will be a tremendous shift in the next generation to rental/lease. Home ownership is likely to be a unattainable goal

Thanks Justin

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