An increasingly common phenomenon is Canadian parents going to court against their children over gifted down payments, according to Toronto-based law firm Shulman & Partners LLP.
“I think it’s coming to a head because of the state of the housing market for so long,” senior associate Kevin Caspersz told BNN Bloomberg.
The average amount provided by older relatives to children who are buying homes swelled from $52,000 in 2015 to a record high of $82,000 in 2021, recent data from Canadian Imperial Bank of Commerce showed. The size of the average gift was even more pronounced in Toronto ($130,000) and Vancouver ($180,000).
During the same period, the share of first-time homebuyers who have received this help from relatives grew from approximately 20% to nearly 30%, CIBC said.# SANDI HALPERN # SOLD # LEASED BANK OF MOM AND DAD
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