A new report from the Canadian Imperial Bank of Commerce (CIBC) has revealed that just under 30% of those buying for the first time received help from family members in the purchasing process, a figure that has climbed precipitously since 2015.
The average amount gifted by family members to assist homebuyers has also risen dramatically since that year, a reflection of skyrocketing prices in the country’s hottest markets. The bank’s report showed that the average gifted amount has hit a record high of $82,000 in 2021, up from $52,000 six years before.
With a 20% down payment on a home priced at $1 million or more deemed increasingly out of reach for first-time buyers, those who turn to the so-called “Bank of Mom and Dad” for support typically do so for a chunk of that hefty payment.
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