As parents we are constantly doing what we can to support and encourage our children. Perhaps one of the most daunting of these responsibilities is getting them into their first home. During this time of high inflation and skyrocketing housing prices, helping children purchase a home may require a multifaceted approach that involves financial, educational, and emotional support. This can start early in a child's life and extend well-beyond the time of purchase. Here are some ways parents can assist their Millennial and Gen Z children in buying a home.

Any good financial strategy will benefit from early planning and putting that plan into action. 

1. 1. Savings Account
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3. Establish a savings account for a child early in life that can help them accumulate funds that can later be used for a down payment.
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5. 2. Education Savings Plans
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7. Invest in education plans like a RESP (registered education savings plan), which can help ensure children get the education they need without accumulating substantial debt, thus freeing more resources for a future home purchase.
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9. 3. Financial Literacy
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11. Teach them the value of money, budgeting, saving, and investing from a young age. Financial literacy is key to making sound financial decisions, which includes buying a home.
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13. 4. Credit Building
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15. When they're old enough, guide them on responsible credit use to build a healthy credit score. This is crucial for obtaining a mortgage with favourable terms and having lenders compete for your business.

At the end of the day, regardless of how hard your child attempts to save and strategize to buy a home, their financial situation may simply be inadequate to do so on their own. What they will ultimately require is your direct monetary support.

1. 1. Gift Funds
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3. Parents can gift money to their children for a down payment. Lenders typically require a letter confirming the gift is not a loan.
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5. 2. Co-Signing
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7. If your child doesn't qualify for a mortgage on their own, a parent can co-sign the loan. This means taking on equal responsibility for the mortgage.
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9. 3. Family Loan
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11. You can provide a loan to your child for the down payment or closing costs of the house. This should be treated as a formal loan, with a written agreement to avoid any future misunderstandings or tax complications.
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13. 4. Direct Assistance
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15. Paying directly for home-purchase-related expenses, such as notary fees, inspection fees, or moving costs can be a huge help.

Learning about and understanding the real estate market can be one of the best ways for your child to navigate a home purchase. Taking opportunities to build their real estate knowledge can be a tremendous help. 

1. 1. Homebuying Process
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3. Educate them on the steps involved in buying a home, from searching for properties to negotiating a deal and understanding the closing process.
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5. 2. Market Research
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7. Help with researching housing markets, interest rates, and the best times to buy.
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9. 3. Professional Guidance
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11. Introduce them to real estate professionals, such as brokers, mortgage specialists, and financial advisors.

Once they have purchased their home, there is still an enormous amount you can teach your child about household operations and maintenance.

1. 1. Renovation and Repairs
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3. Offering physical help or professional contacts for home improvements or necessary repairs can be invaluable.
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5. 2. Continued Financial Education
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7. Encourage them to continuously learn about property investment, tax advantages of owning a home, and financial management post-purchase.
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9. 3. Household Essentials
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11. Consider helping them furnish their new home with essentials or tools needed for home maintenance.
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13. 4.Emotional Support
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15. Recognize that buying a home is not just a financial transaction but also an emotional journey. Be there to offer guidance, reassurance, and support.

Getting your child into programs offered by the government can be a big help.

1. 1. First-Time Homebuyer Incentives
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3. Help them explore any government incentives for first-time homebuyers, which can include tax breaks, grants, or favourable loan terms.
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5. 2. Educational Workshops
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7. Encourage attendance at free workshops and seminars for first-time homebuyers offered by government agencies or non-profits.

As we grow older, we tend to better understand the importance of long-term planning. 

1. 1. Insurance and Estate Planning
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3. Assist with setting up the necessary insurance to protect their home and plan for the future.
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5. 2. Retirement Funds
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7. Parents may want to consider early withdrawal from their own retirement funds to help their children with down payments. However, this comes with penalties and tax implications, so it should be considered carefully.

Every family's situation is unique, and the best approach will differ based on personal circumstances and financial capabilities. It's also important to respect boundaries and encourage independence, so assistance should be offered in a way that empowers your children to eventually manage on their own.

At TEAM BROADY, we understand that it takes a village to raise a child and we’re here to help. Let us help get your family on track for their next home purchase or sale. We can be reached at 514-613-2988 or by email at info@teambroady.ca. We look forward to hearing from you!