Parents hoping to enjoy their empty nests in comfort may first have to deal with some financial pleas from their kids.
Nearly half of first-time buyers say they expect help from the “bank of mom and dad” when it comes to paying for a home, according to BMO’s 2015 home buying report.
Real estate observers have said the trend is likely the highest in Vancouver.
In 2014, 30% of first-time homebuyers said they expected parents or relatives to pony up some money to help them with entering the market.
But in the latest survey, released Thursday (April 23), that number has grown to 42%.
The study also found 42% of homebuyers looking to upsize their current homes are turning to family for assistance.
These “upsizers” plan to spend an average of $474,000 on a new living space and put down a 26% deposit. Respondents said they expect their families to cover 20% of the average cost.
First-time buyers, meanwhile, have budgeted $313,000 with a 19% deposit. They expect their families to help with 12% of the cost.
Exactly half of upsizers and 40% of first-time buyers depending on this assistance said they couldn’t afford a home otherwise.
As of March 2015, an average home in B.C. costs $642,000, according to the report. Ontario was a distant second at $466,000 and Alberta ranked third at $399,000.
Pollara surveyed 2,007 Canadian residents between February 24 and March 5 on behalf of BMO. The survey results are considered accurate within plus-or-minus 2.2%.
