Kids Buying a Home? Parents to the Rescue!

“The dream of homeownership may be fading for some.” This is a very daunting comment. It is not Robert Floris’ of Mortgage Architects saying this. But I must admit it did really make me think.

This was said by the head of the Federal housing agency, CMHC, Evan Siddall. He also stated “Housing affordability has become a serious problem in our major cities. He is not totally wrong. Everybody loves home prices increasing (including me) but I also worry for what I wish for.

I was in Boston, several years ago on a spectacular summer day. I began speaking a medical professional and admitted to him what an exciting city he lived in. It attracted many high tech companies and large scale medical institutions. He informed me that Boston was having problems attracting high-end talent due to the high price of real estate and the huge cost-of-living. I must admit I did not think of that. Let’s hope the same fate does not happen to our great Canadian cities.

The government new mortgage rules in 2018 will certainly make affordability more difficult. CREA has come up with a potential solution. They are suggesting the federal government allow parents to give the kids up to $25,000 from their RSP’s to help their children purchase a home. In fact the Canadian Real Estate Association has suggested the maximum withdrawal limit be bumped to $35,000. Other suggestions by CREA are to include in parents RSPs:

1. Kids who relocate to work
2. Accommodations for an elderly family member
3. The loss of a spouse
4. Marital break up

At the very least realtors are trying to offer solutions. All these changes shall make 2018 very interesting.

Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online here with absolutely no pressure and no obligation.

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