Parents Gifting $82,000 to $130,000 For First Home On Average (Canada)

[Economy 52,844]

https://www.bnnbloomberg.ca/parents-gifting-82-000-on-average-to-first-time-homebuyers-cibc-1.1671716

 

Parents in Canada are gifting an average of $82,000 to their kids so they can afford to put a downpayment on a home

 

That average jumps to $130,000 in metro cities like Toronto or Vancouver

 

Canadas 20+ year uninterupted housing boom has not only created extreme financial stress in housing affordability but also continued to create a large generational wealth gap and older Canadians become millionaires by realestate assets alone while those under 40 often get stuck renting with no hope of ever buying

[salty like sodium 2,259]

but the 40 year olds get 130000$ from their parents so what's the problem  my parents don't own a home and definitely couldn't give me that much for a downpayment 

[Economy 52,844]

1 minute ago, salty like sodium said:

but the 40 year olds get 130000$ from their parents so what's the problem  my parents don't own a home and definitely couldn't give me that much for a downpayment 

The problem is thats like a 10% downpayment in most of our cities, even less than that in the most expensive cities...

 

A $900,000+ mortgage even for high earners is still insane and thats the ones lucky enough to get that gifted money (i wont be receiving that, thats for sure)

 

When i have friends in construction or the trades making like literally $37/h (just under $30USD) saying they have no clue how they will ever by a house, u know something is seriously wrong

 

Most ppl I know in the last few years that can buy houses are condos are ppl with the perfect 3 conditions...

 

1. Higher income than most

2. A lot of money saved up for downpayment

3. Extra money provided by their family as a gift or early inheritance

 

It also helps if u dont have kids and can afford to give up some space so u can rent out part of the house to help with mortgage payments

 

ita gotten to the point where many ppl in the top 20% of income earners are still strained at the prospect of buying a house

 

[Hecturr 1,937]

the only upside is that if u do eventually manage to get a house it's easier to get another one, but its a bit of a steep climb to even get a house in the first place 

[bionic 50,111]

My Mom wouldn't even buy me a $1 carton of juice, let alone give me $80,000

[Rj Barker 3,331]

That's nice that some parents can afford to do that but it's just despicable that our generation cannot afford mortgages like they did.  How bad is it in Canada? At the moment in the UK it's on track for house prices to be 7x larger than the average salary. New buys into the market is declining rapidly I think it's shrank from 50% to 25ish% in the last 10-15 years

[gumzy3000 7,898]

I live in Toronto and this makes me depressed. My parents are not in a position to casually gift me $100k and I really don't have any friends like this either. I wonder who these people receiving these huge gifts are. 

Also, I think the median, as opposed to the average, would be a more realistic value in this case. 

I also just want to add that being single also makes it harder to purchase a house. Two incomes are 100% better than one. 

[Rj Barker 3,331]

7 minutes ago, Economy said:

The problem is thats like a 10% downpayment in most of our cities, even less than that in the most expensive cities...

 

A $900,000+ mortgage even for high earners is still insane and thats the ones lucky enough to get that gifted money (i wont be receiving that, thats for sure)

 

 

Wait... 900,000?! What's the average house price? Thats insane.

[bionic 50,111]

Just now, gumzy3000 said:

I live in Toronto and this makes me depressed. My parents are not in a position to casually gift me $100k

Most people will inherit wealth only when their parents die, whats left after the capital is used for social and end of life care anyway

Its a sad state of affairs

[LaLuna 12,732]

This is why I'm not ready to be a home owner yet, yes I'd love to have a house but there's no way I could afford a downpayment like that and my mom sure as hell can't gift it to me either 

 

 

[Mindblown 6,744]

I'd surely abandon my morals for $82,000

[Guest]

I work in the mortgage industry and the idea of an $82,000 downpayment is so absurdly high to me. I don't recall ever seeing that in any loan officer's pipeline.

[Economy 52,844]

13 minutes ago, Rj Barker said:

Wait... 900,000?! What's the average house price? Thats insane.

Nationally the average right now is $680,000 which is more than say the US (even adjusting for currency)

 

In metros or metro suburbs like where i live tho its way higher

 

In Toronto a typical house is like $1.5M, in my suburb city like $1.1M tho condos are obviously a fair bit lower tho i havent checked where they are at right now

 

And thats an average. Of course simmilar houses will also vary by area and neighbourhood. In my grandparents old street for example most houses were near $2M and they werent huge but the area was considered desirable

 

But our housing boom has lasted 2 decades. We have the lowest number of housing units per capita in the G7 while maintaining one of the fastest population growth rates in the developed world

 

In conclusion the chronic housing shortage isnt going away any time soon

 

Theyve tried to "deflate the bubble" with countless tightning of mortgage rules like reduction in amortization rules, tougher downpayment rules and stress tests

 

But more detailed data last few years has basically confirmed it was never a bubble say like US housing boom of 2003 to 2007. We just literally have a really bad housing shortage so no policy to try and cool demand truly solves the problem because this isnt a speculation issue. Theres not enough houses for the population

 

Wed need another 1.4M units to hit G7 average of units per population. Thats a huge amount of supply shortage for a country of only 38 million people

[Dojo 19,823]

every parent should but their offspring their first home, honestly

[Economy 52,844]

23 minutes ago, gumzy3000 said:

I live in Toronto and this makes me depressed. My parents are not in a position to casually gift me $100k and I really don't have any friends like this either. I wonder who these people receiving these huge gifts are. 

Also, I think the median, as opposed to the average, would be a more realistic value in this case. 

I also just want to add that being single also makes it harder to purchase a house. Two incomes are 100% better than one. 

Also some ppl dont get gifts at all so they wouldnt be included in the numbers

 

So ur right that this isnt representative of what the average person actually gets