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A recent study reveals that roughly 70% of new homebuyers in Canada could not purchase their home without financial assistance from family, such as cash gifts or loans. The reliance on the so‑called “Bank of Mom and Dad” has shifted from a safety net to an essential requirement for entering the housing market in today’s affordability climate.

Among first-time buyers, 41% received gifts or inheritances, with an average amount of about $74,570 toward their down payment. While many could still afford the purchase without the help, they often made concessions—such as choosing less expensive neighborhoods or smaller homes—to stay within budget.

Homebuyers are experiencing rising financial stress, with 42% encountering unexpected costs (e.g., legal fees, repairs), over half struggling with debt, and 63% fearing future default on mortgage payments. Nearly one in six missed a mortgage payment entirely, highlighting widespread affordability challenges in Canada’s current housing market.

Read the full article on: REAL ESTATE MAGAZINE