It’s Bank of Mom and Dad to the rescue for the majority of first-time homebuyers in B.C., according to a Society of Notaries Public of British Columbia survey released December 9.
The survey showed 57% of notary clients across the province typically receive parental help, while 30% buy on their own.
On Vancouver Island alone, 60% of first-time buyers getting parental help with the down payment, while about 25% funded their own purchase.
The Island notaries revealed that parents tend to fund less than 25% of the down payment for 37% of clients, 44% of clients have their parents fund 25-50% of the down payment and 19% of clients have their parents fund more than half the down payment.
In terms of how the deals were structured, 72% of parents gave the funds as gifts, 7% went on title and 21% made other arrangements.
“Deciding whether or not you can or should support your child’s purchase of a first home, and how to structure the arrangement is a personal choice for each family,” said Tammy Morin Nakashima, president of B.C. Notaries.
“There are several things families should consider, including whether or not the lending parents should share in ownership and how everyone should plan for the unfortunate possibility of death or divorce.”
“Whether people are buying a home on their own, with a spouse or partner, or with a parent, we help them consider and understand their options so they can make the best decisions for their situation now and in the future,” said Morrie Baillie, a Victoria notary.
Of those getting financial help, almost all are getting it from their parents rather than other family or friends.
