The Bank of Mom and Dad is expected to be a big lender in the housing market, again, this year. A new survey by one of Canada’s popular lending and mortgage websites suggests well over a third (about 37%) of first time buyers needed help from relatives to get into the market.
Interestingly, the most expensive markets did not have the highest levels of family aid. Quebec topped the list with about 45% of first time buyers getting help from “mom and dad”. The same number, 45%, had a down payment of 20% or more with a mere 9% putting the minimum 5% down.
In the expensive markets, B.C. saw 42% of first time buyers getting family help. Forty-five percent put down 20% or more and 13% made the 5% payment. In Ontario 35% used the bank of mom and dad with 38% fronting 20% or more for their first home and 21% providing 5%.
The Prairies saw an average of about 35% getting help from relatives. Twenty-four percent made the 20% down payment and 39% had 5% down.
The Atlantic Provinces saw the lowest reliance on family aid with just 18% getting help. Eighteen percent made a down payment of 20% or more with 41% providing the minimum.