Helping Your Kids Buy Their First Home (So They Can Finally Move Out!)

Ah, the joys of parenting—sleepless nights, endless grocery bills, and now, adult children who just haven’t quite moved out yet. 

If you’ve ever joked about turning their bedroom into a yoga studio or a home gym but can’t because they’re still living in it, you’re not alone.

With Canadian home prices higher than ever, it’s no surprise that many young adults are staying put longer, unable to break into the real estate market on their own. But as a parent, you can help them get a foot in the door—literally.

Let’s explore some smart ways to help your kids buy their first home, secure a mortgage, and finally, finally give you back your space.

Why Are Young Adults Struggling to Buy?

First, let’s acknowledge the reality. The Canadian housing market isn’t what it was when you bought your first home.

Here’s what they’re up against:

🏡 High Home Prices – The average home price in Canada is well into the $700,000+ range, with even higher prices in major cities like Toronto and Vancouver.

💰 Larger Down Payment Requirements – With home prices this high, even a minimum 5% down payment can be a hefty sum.

📈 Stricter Mortgage Rules – Thanks to the mortgage stress test, buyers need to qualify for a rate that’s higher than what they’ll actually pay, making it tougher to secure financing.

🚪 Rising Rents – Saving for a down payment is difficult when rent prices are sky-high, leaving many young adults stuck in a cycle of paying someone else’s mortgage instead of building their own equity.

But don’t worry—if you want to help nudge your kids out the door and into their own home, there are several ways to make homeownership more accessible.

How Parents Can Help Their Kids Become Homeowners

1. Gifting or Loaning a Down Payment 💸

Many first-time buyers struggle with the biggest hurdle—saving a down payment. If you’re in a financial position to do so, gifting or loaning them part (or all) of their down payment can be a game-changer.

✔ Gifted Down Payment – This is a one-time financial boost (not a loan). Just be aware that lenders may require a signed letter confirming it’s a gift, not debt.

✔ Family Loan – Instead of gifting the money outright, you can offer it as an interest-free or low-interest loan, helping them while also protecting your finances.

If your kid has been spending their paycheck on overpriced coffee and concert tickets instead of saving, this could be the gentle financial push they need.

2. Co-Signing or Guarantor Support 📝

If your child’s income isn’t quite high enough to qualify for a mortgage, you can co-sign or act as a guarantor on their loan.

🔹 Co-signing: You become equally responsible for the mortgage, meaning if they miss payments, it impacts your credit.

🔹 Guarantor: You guarantee the mortgage but don’t have ownership in the property—safer for parents who want to help but limit financial liability.

This is a great option if they have steady income but don’t quite qualify due to strict lending rules. Just make sure you trust them to handle payments responsibly (and maybe get it in writing that you’ll always have a key to their guest room).

3. Buying a Rental Property They Can Move Into Later 🏠

If buying a home for your child outright isn’t feasible right now, another great strategy is purchasing a rental property that pays for itself until they’re ready to move in.

🔹 Buy a home or condo in a desirable location and rent it out.

🔹 The rental income helps cover the mortgage.

🔹 When your child is financially ready, they move in or assume ownership.

This option helps them secure real estate at today’s prices, rather than waiting and risking further price increases.

Plus, it builds family wealth over time.

If they’re really itching for independence, you could even rent them a unit in the property at a discounted rate—giving them a taste of responsibility while keeping it within the family.

4. The Family Purchase Plan: Shared Homeownership 🏡

Another option? Buy a multi-unit home together.

🔹 Purchase a duplex or home with a basement suite—your child lives in one unit, and rent from the other helps with mortgage payments.

🔹 You co-own the home, giving them an ownership stake without shouldering the entire financial burden.

This setup allows your child to step into homeownership without feeling overwhelmed while also keeping their finances in check.

And let’s be honest—if they’re not quite ready to live fully on their own (ahem, laundry skills still in progress?), this keeps you close enough to lend a hand while still getting your own space back.

5. Educating Them on Smart Mortgage Decisions 🧠

Even with financial help, your kids need to understand how to manage a mortgage responsibly.

Encourage them to:

✔ Improve Their Credit Score – Paying bills on time and keeping credit card balances low can boost their mortgage approval chances.

✔ Understand Interest Rates – Fixed vs. variable rates—what’s best for their budget?

✔ Get Pre-Approved – Knowing what they can afford saves time and disappointment.

✔ Use First-Time Buyer Incentives – Canada offers programs like the First-Time Home Buyer Incentive and Home Buyers’ Plan (HBP) to make homeownership easier.

If you want to make sure they don’t go into this blind, I’m happy to chat with them and walk them through what they need to know before buying.

Final Thoughts: From Your House to Their Home

Helping your child buy their first home is a big decision, but it can also be a smart investment in their future (and, let’s be real, your personal space!).

Whether it’s gifting a down payment, co-signing, buying a rental property, or educating them on smart homeownership—there’s a strategy that can work for your family.

If you’d like to explore options, I’d love to help you map out a game plan to make homeownership possible for your kids.

📅 Book a Free Consultation Here → Book a consultation online today.

Here’s to growth, innovation, and success! BOOK A CONSULTATION.

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– Edith Parinas

'The Mortgage Broker ~ The Yogi ~ The Blogger'

Hello@EdithParinas.com