Most first-time homebuyers on Vancouver Island get a little help from mom and dad when it comes down to buying their first property, according to a new survey released Wednesday by the Society of Notaries Public of British Columbia.
The survey showed 60 per cent of notary clients typically receive parental help, while 25 per cent buy on their own.
The Island notaries revealed that parents tend to fund less than 25 per cent of the down payment for 37 per cent of clients, 44 per cent of clients have their parents fund 25-50 per cent of the down payment and 19 per cent of clients have their parents fund more than half the down payment.
In terms of how the deals were structured, 72 per cent of parents gave the funds as gifts, seven per cent went on title and 21 per cent made other arrangements.
“Deciding whether or not you can or should support your child’s purchase of a first home, and how to structure the arrangement is a personal choice for each family,” said Tammy Morin Nakashima, president of B.C. Notaries.
“There are several things families should consider, including whether or not the lending parents should share in ownership and how everyone should plan for the unfortunate possibility of death or divorce.”
“Whether people are buying a home on their own, with a spouse or partner, or with a parent, we help them consider and understand their options so they can make the best decisions for their situation now and in the future,” said Morrie Baillie, a Victoria notary.
The results of the survey were similar provincewide, with 57 per cent of first-time buyers getting parental help with the down payment, while about 30 per cent funded their own purchase.
Of those getting financial help, almost all are getting it from their parents rather than other family or friends.