After a massive price hike over the last few years, housing has become very expensive in many of the country’s key markets. Canadian parents say they have to assist their children over the age of eighteen to obtain a house.
When it comes to renting, 35% of parents with children over age of 18 are helping with rent payments. According to a research done by FP Canada.
Expectations are high among parents of underneath eighteen that they’ll even be on the hook once it comes time for their children to pay for their initial home. Half (48%) say they shall facilitate their children with their initial home purchase.
“With unprecedented house prices in many parts of the nation, it is almost impossible for many young Canadians to enter the market without their parents help,” said Kelley Keehn, FP Canada’sconsumer advocate in a statement.
“That puts parents under pressure to take extreme moves to assist their children purchase a home, along with adding into their retirement savings or their own home equity.” Said Kelley.
With more cash flow going to help the shelter expenses of their children, an increasing number of Canadians are finding that assistance is coming at the cost of their retirement plans.
Almost 4 in 10 say that, helping their children buy a home will postpone their retirement.
Another 30% say they will have to take advantage of retirement savings to help their children purchase their home. while 26% plan to take advantage of their home equity.
Although it’s natural to want to help your children, it’s essential to carefully consider the impact on your own financial security before helping with such a massive purchase.
Other key findings:
- Older parents (55+) were more seemingly to have aided their youngsters with buying a home.
- Those in Atlantic North American nation (32%), Manitoba and Saskatchewan (32%) were more seemingly to have helped.
- Parents living in urban areas are “significantly” more seemingly to read retirement savings or home equity to help their youngsters than those living in rural areas.