Helping Your Child Buy Their First Home
Helping a child buy a first home is a meaningful milestone. As significant intergenerational wealth transfers begin, many Canadian parents—particularly Baby Boomers, who benefited from a strong saving culture, rising home values, and often sizeable pensions—are sharing capital earlier to support their children’s financial stability.
Did You Know?
More than 40% of first-time buyers receive cash gifts averaging $74,570—making gifting the most common source of down payments. That amount is roughly equal to about one year of spending for a Canadian retiree household (about $78,499 annually in 2023). (Statistics Canada 2025)
At the same time, today’s housing market is making support more important. Rising prices, higher interest rates, and stricter lending rules have pushed many first-time buyers into their 30s and early 40s—especially in higher-cost markets like Ontario and British Columbia. As a result, more parents in their 60s and beyond are stepping in to help. (CMHC Mortgage Consumer Survey (2025); Financial Post)
For those with the means, providing support is a thoughtful decision—one that should strengthen a child’s future without compromising their own. A well-structured plan can help balance both priorities.
Why Careful Planning Matters
A home purchase is rarely an isolated event. It can affect cash flow, taxes, insurance, and estate plans—along with long-term priorities such as:
- Retirement income
- Health or long-term care costs
- Housing decisions
- Unexpected expenses
For parents nearing or in retirement, a large gift can significantly reduce savings—especially when supporting more than one child. Open family conversations and guidance from a financial advisor can help set expectations, preserve harmony, and align support with long-term goals.
Gifts Reflect Regional Housing Costs Buyers in higher-cost provinces like Ontario and B.C. rely more on family gifts, while Prairie buyers tend to use savings. Gift amounts reflect this gap—averaging about $43,000 in the Prairies and over $140,000 in B.C. (Financial Post / Yahoo Finance, 2025)
Common Ways Parents Help Children Buy a First Home
The right approach depends on personal circumstances, priorities, and risk tolerance, as well as any legal considerations—such as family law obligations—that may influence how parents can support a child.
- Gift funds toward a down payment. Often the simplest approach.
- Provide a structured loan. Helps fund a down payment with clear repayment terms.
- Co-sign or guarantee a mortgage. Can help a child qualify sooner but increases parental liability.
- Buy a home together. While shared ownership can increase affordability, it also introduces legal and tax considerations, along with added complexity in decision-making, as all co-owners must agree on matters such as renovations.
- Leverage a First Home Savings Account (FHSA). Supports tax-efficient saving, growth, and withdrawals for a first home (up to $40,000 per person).
Planning For a First Home
The First Home Savings Account (FHSA) is a tax-efficient way to save and support a home purchase. It’s also important to consider how helping today may affect your long-term financial goals.
- Read our FHSA at a Glance overview
- Explore the Retirement Calculator
Making decisions about supporting your children and managing wealth can feel complex, so looking at the full picture can help bring clarity. Working with experienced professionals allows you to take a more coordinated approach, so you can:
- Include financial support for a child as part of your broader wealth plan
- Better understand potential tax, cash flow, and planning considerations
- Review your insurance and risk protection needs alongside your overall strategy
- Keep your estate plans and family goals aligned with clear, well-rounded advice
By providing structure and objectivity, an advisor helps families navigate sensitive discussions and make informed decisions with confidence.
Start the Conversation That Shapes Your Future
With thoughtful planning, you can support children while protecting your own financial future. Comprehensive planning today can help support your family for years to come.
Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.
