The Bank of Mom & Dad
The Bank of Mom & Dad – How to help your kids buy their first place
I hope that you’re sitting down for this… but real estate in Vancouver is expensive these days. It also seems as though the rate at which people can save for a down-payment, can barely keep up with the rising cost of real estate. So how can mom and dad help their kids? There are few options that you (as mom and dad) can consider. One would be simply to gift your children assets/money from your savings/portfolio. There are no tax implications for doing this, though you will effectively be giving up control of the asset/money. Another option would be to set up a joint investment account with your kid(s). This way, mom and dad can deposit money into the joint investment account, and the kids can use any portion of the cash in the account for their down-payment. Perhaps your kids don’t need help with a down-payment, but they do need help qualifying for a mortgage loan, In this case, mom and dad can either act as a guarantor on the mortgage, or they can co-sign the mortgage with their kids. In today’s market, the bank of mom and dad has never been more important, and if you are planning on helping your kids with their first home purchase, you should certainly consider the aforementioned strategies. If you’d like to know more about the specifics of any of the strategies, please let us know and we would be happy to help.
Written by:
Jon Glougie, CFP®, CIM®
Associate Portfolio Manager
Luft Financial, iA Private Wealth
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
How do we elevate your wealth?
It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.
News & commentary
September 2023 Portfolio Management Team Update
September 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth September 20, 2023 Market Review Global equities retreated in August, after posting their best performance in the first seven months of a year since 2009, as uncertainty about the future trajectory of interest rates – fueled by stubbornly high […]
Read more
August 2023 Portfolio Management Team Update
August 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth August 15, 2023 Market Review Global equity indices added to their solid first-half gains in July on optimism about slowing global inflation and a potential end to the Federal Reserve’s interest rate hikes. The MSCI World Index’s 16.2% YTD […]
Read more
July 2023 Portfolio Management Team Update
July 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth July 26, 2023 Market Review Global equity indices rebounded in June, as economic data that suggested resilience in the U.S. economy raised investors’ hopes for a “soft landing” (which is defined as a slowdown in economic growth that avoids […]
Read more