HOMEBUYING

Family Matters: A Closer Look at Multigenerational Homebuying

Although recent interest rate decreases have made homeownership a more realistic goal for many Canadians, current home prices are still out of reach for many individuals. Due to this and other economic pressures, multigenerational homebuying – purchasing a home with other members of your family – has been on a steady rise in Canada in recent years. Whether purchasing a home with financial support from parents or other relatives or purchasing a home that will be lived in by all purchasing family members, this type of homeownership is more popular than ever.

In some situations, relatives (often parents) of a homebuyer will gift or loan money to be put towards the down payment. These funds could come from money that had been set aside for inheritance, investments or other sources. Alternately, some new homebuyers co-sign a mortgage with parents or other relatives, effectively becoming co-owners of a property and mortgage with them. This type of arrangement is sometimes a good option when the new homebuyer would not fully qualify for a mortgage completely on their own due to their income or other factors. With some family support, more Canadians have been able to move forward on their homebuying plans with these options.

Another popular arrangement is purchasing a home to be lived in by one or more generations or groups of relatives within a family. It is not uncommon to see an aging couple sell their home and pool money and resources with one or more adult children to purchase a home together. By living together, some families are able to afford a larger or more appealing home than they would be able to purchase on their own. Living together as a family unit often has additional advantages as well, such as providing a sense of community, childcare opportunities and support for elderly family members as they age. Even siblings or cousins may consider this type of homeownership arrangement in order to keep costs lower and get into the real estate market earlier, choosing to benefit from their real estate investment as a family.

Whether you are looking to secure a mortgage on your own, with a partner, or with members of your family, Tandia is here to help. No matter what your homebuying journey looks like, we can help you find the mortgage option that is right for you. To learn more about mortgages and develop an attainable plan that puts your future into focus, reach out to a Tandia representative - there is no one-size-fits-all solution, and we are happy to help you work towards your “home sweet home”.

Tandia's Mortgage Glossary

Looking to brush up on key mortgage-related terms and phrases? Let us help! Check out our handy Mortgage Glossary so you can navigate the homebuying process with ease.