Emptying the Nest: How Parents are Helping their Kids Buy Homes

Marci • March 28, 2018

For parents who have the means to help their kids buy a home in today’s pricey environment, gifting money towards a down payment is one of the best way to do it.

In February 2018, the  Financial Post  ran  a story  about adults still living with their parents. The figures are staggering. The number of adults still living at Parents Inn—as the  Post affectionately referred to it—is up 13.3 per cent since 2001. For reference, young adults living with a spouse or partner is down 14.6 per cent.

For many boomers who, through modern healthcare and better habits, have been given a second chance at a teenager’s existence (albeit with more money and less mobility), their kids are definitely cramping their style.

“I’m 66 years old,” says Steven James (not his real name), a retired mechanic from Oakville. “I didn’t work my butt off for the last 48 years to share my bathroom with my son.”

Steven’s not alone. Boomers across the country are done with multi-generational living. And it’s gotten to the point where they’re throwing money at the problem. Of Canadian parents recently  polled by CIBC , 76 per cent would give their kids a financial boost to help them move out, get married or move in with a partner.

But these days, given the average price of a starter home and the  state of employment for young people  (the record low since 1976 was still over 10 per cent), it’s going to take more than just a “boost.”

If you’re in a position to help your kids buy a home (and help yourself reclaim your home), you have many options. But a gift—otherwise known as a living inheritance—is among the most sensible. Here are three reasons why:

1. Gifting money makes the most sense for tax reasons.

As a baby boomer, you’re in the middle of an unprecedented wealth transfer that CIBC capital markets  estimates  to be in the range of $750 billion in cash, property and investment holdings. If you’re in the position to not need the money coming to you, that windfall will just amount to a big tax hit. However, if you were to turn around and gift it to your kids, it’s no longer a tax burden for you or them (unlike in the U.S., Canada has no gift tax). This  Globe and Mail  article  delves into the long-term tax implications of gifting money: namely less for your kids to pay in estate tax when you die.

For all intents and purposes, gifting money is a way to take it off your books, without putting it on your kids’ books.

2. Gifting money makes the most sense for legacy reasons.

Shirtsleeves to shirtsleeves in three generations.

This old proverb neatly sums up what happens when large sums of money are passed down through a family. You’ve no doubt heard of wealthy heirs who finally get their hands on the family fortune, only to squander it away within a generation.

While you still have some control over where your money goes, gifting a portion of it towards the purchase of an appreciating asset for your children is sensible.

You won’t want to gift that money in the form of straight cash—it would be too easy for your kids to spend it haphazardly.

And you won’t want to gift a piece of property over to your kids. This is seen as a gift of assets “in-kind” and the Canada Revenue Agency will treat the transaction as if you sold the property at fair market value. You’ll be hit with a tax bill for 50 per cent of the capital gains, which could be substantial on an inherited property bought decades ago.

To gift the money for a real estate purchase, you’ll sign a letter confirming that the money is a gift and isn’t required to be paid back. On the morning of signing day, you’ll transfer the funds to your kid’s account (most primary lenders need to see money in the account before they complete the mortgage transaction).

3. Gifting money makes the most sense for legal reasons.

If you want to help your kids with their mortgage and you don’t have the liquidity to hand over a sizeable amount of cash, the other option is to co-sign or guarantee their mortgage. The problem with this approach is varying degrees of liability. By co-signing or guaranteeing the loan, you are assuming responsibility if things go wrong for your child if they can’t pay their mortgage. You can potentially be putting your financial future at stake.

In other words, you’d have to have the utmost  objective  confidence that there’s no risk of them defaulting on their mortgage.

Gifting a portion or all of the down payment, like gifting anything else, severs the tie you have with the money. None of it belongs to you, nor does the liability that comes with how it will be used.

But the best part of gifting your kids money to buy a home…

…will come when you are invited over for the first time and can see the fruits of all your labour: a better life for your children and their family.

 

This article was written by Dan Yurman and was originally published here on Canadian Mortgage Trends on March 13th 2018. 

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Is Alternative Lending the Right Choice for Your Mortgage Needs?

By Marci Deane • December 17, 2025
Alternative Lending in Canada: What It Is and When It Makes Sense Not everyone fits into the traditional lending box—and that’s where alternative mortgage lenders come in. Alternative lending refers to any mortgage solution that falls outside of the typical big bank offerings. These lenders are flexible, creative, and focused on helping Canadians who may not qualify for traditional financing still access the real estate market. Let’s explore when alternative lending might be the right fit for you. 1. You Have Damaged Credit Bad credit doesn’t have to mean your homeownership dreams are over. Many alternative lenders take a big-picture approach . While credit scores matter, they’ll also look at: Stable employment Consistent income Size of your down payment or existing equity If your credit has taken a hit but you can demonstrate strong income and savings—or have a solid explanation for past credit issues— an alternative lender may approve your mortgage when a bank won’t. Pro tip: Use an alternative mortgage as a short-term solution while you rebuild your credit, then refinance into a traditional mortgage with better terms down the line. 2. You're Self-Employed Being your own boss has its perks—but mortgage approval isn’t usually one of them. Traditional lenders require verifiable, consistent income—often two years’ worth. But self-employed Canadians typically write off significant expenses, reducing their declared income. Alternative lenders are more flexible and understanding of self-employed income structures. If your business is profitable and your personal finances are healthy, you may qualify even with lower stated income. Even if interest rates are slightly higher, this option is often worth it—especially when balanced against tax planning and business deductions . 3. You Earn Non-Traditional Income Today’s income sources aren’t always conventional. If you earn through: Airbnb rentals Tips and gratuities Rideshare or delivery apps (like Uber or Uber Eats) Commissions or contracts You might face challenges with traditional lenders. Alternative lenders are often more willing to work with these non-standard income streams , especially if the rest of your mortgage application is strong. Some will consider a shorter income history or evaluate your average earnings in a more flexible way. 4. You Need Expanded Debt-Service Ratios Canada’s mortgage stress test has made it harder for many borrowers to qualify with big banks. Alternative lenders can offer more generous debt-service ratio limits —meaning you might be able to qualify for a larger mortgage or a more suitable home, especially in competitive markets. While traditional GDS/TDS limits typically sit at 35/42 or 39/44 (depending on your credit), some alternative lenders will go higher, especially if: You have a larger down payment Your loan-to-value ratio is lower Your overall financial profile is strong It’s not a free-for-all—but it’s more flexible than bank lending. So, Is Alternative Lending Right for You? Alternative lending is designed to offer solutions when life doesn’t fit the traditional mold . Whether you're rebuilding credit, running your own business, or earning income in new ways, this path could help you get into a home sooner—or keep your current one. And here’s the key: You can only access alternative lenders through the mortgage broker channel . Let’s Explore Your Options Not sure where you fit? That’s okay. Every mortgage story is unique—and I’m here to help you write yours. If you’re curious about alternative mortgage products, want a second opinion, or need help getting approved, let’s talk . I’d be happy to help you explore the best solution for your situation. Reach out anytime. It would be a pleasure to work with you.

Bank of Canada Rate Announcement Dec 10th, 2025

By Marci Deane • December 10, 2025
Bank of Canada maintains policy rate at 2.1/4%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario December 10, 2025 The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. Major economies around the world continue to show resilience to US trade protectionism, but uncertainty is still high. In the United States, economic growth is being supported by strong consumption and a surge in AI investment. The US government shutdown caused volatility in quarterly growth and delayed the release of some key economic data. Tariffs are causing some upward pressure on US inflation. In the euro area, economic growth has been stronger than expected, with the services sector showing particular resilience. In China, soft domestic demand, including more weakness in the housing market, is weighing on growth. Global financial conditions, oil prices, and the Canadian dollar are all roughly unchanged since the Bank’s October Monetary Policy Report (MPR). Canada’s economy grew by a surprisingly strong 2.6% in the third quarter, even as final domestic demand was flat. The increase in GDP largely reflected volatility in trade. The Bank expects final domestic demand will grow in the fourth quarter, but with an anticipated decline in net exports, GDP will likely be weak. Growth is forecast to pick up in 2026, although uncertainty remains high and large swings in trade may continue to cause quarterly volatility. Canada’s labour market is showing some signs of improvement. Employment has shown solid gains in the past three months and the unemployment rate declined to 6.5% in November. Nevertheless, job markets in trade-sensitive sectors remain weak and economy-wide hiring intentions continue to be subdued. CPI inflation slowed to 2.2% in October, as gasoline prices fell and food prices rose more slowly. CPI inflation has been close to the 2% target for more than a year, while measures of core inflation remain in the range of 2½% to 3%. The Bank assesses that underlying inflation is still around 2½%. In the near term, CPI inflation is likely to be higher due to the effects of last year’s GST/HST holiday on the prices of some goods and services. Looking through this choppiness, the Bank expects ongoing economic slack to roughly offset cost pressures associated with the reconfiguration of trade, keeping CPI inflation close to the 2% target. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. Uncertainty remains elevated. If the outlook changes, we are prepared to respond. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is January 28, 2026. The Bank’s next MPR will be released at the same time.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

By Marci Deane • December 3, 2025
If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.