HELOC vs reverse mortgage for parents helping kids buy a home

Originally Posted on Globe and Mail
Featuring Julia Chung
February 28, 2023

It seems most urgent for parents to help their adult children get into the housing market when real estate prices are soaring.

But now is actually an opportune moment to consider offering money for a down payment. House prices are falling fast in cities across the country, which means parental gifts can help reduce the size of the mortgages first-time buyers must take on. This is huge because the rise in mortgage rates over the past year has made it harder than ever to afford the cost of home ownership.

“How much of your future comfort are you potentially giving away in debt servicing costs in order to manage this?”

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