One of the most popular financial entities for Canadian homeowners has been the Bank of Mom and Dad. According to a new survey by BMO (NYSE: BMO), 43% of Canada’s homeowners said they could not have purchased their home without assistance from family.
The survey also found just over a quarter (27%) of Canadians expected financial support from their parents and/or grandparents, with 6% expecting assistance for the down payment for a home, 8% expect help with monthly rent and 7% expecting support for home renovation costs.
Among the 39% of respondents who planned to provide financial help for their child(ren) and grandchild(ren), 5% said they were planning to contribute to the down payment for their home and 4% planned to contribute toward their First Home Savings Account.
A little less than half (45%) of respondents said they would consider buying a home with friends, family members or other people they are not romantically involved with, with Gen Z (63%) and millennials (50%) were the mostly likely to favor the shared homeownership approach.
But Canadian parents and grandparents may be holding on to their money for some time. The survey found half (50%) of its respondents saying that homeownership is less attainable than it was 12 months ago, and two-thirds (66%) stating they were less confident that they will own a home in their lifetime compared to five years ago. Amond the respondents planning on purchasing a home in the near future, only 14% planned to make that plunge this year and 24% are putting it off to 2026 or later.
“Canada’s housing market remained under pressure heading into the spring, with sales and prices both weakening further,” said Robert Kavcic, senior economist, BMO Capital Markets. “There is some clear underlying weakness as inventory builds and investors remain absent. Suffice it to say, homebuyers are losing confidence and motivation, especially in areas of BC and Southern Ontario.”
