376 – Should You Help Your Child Get a Mortgage? with Ron Butler

Debt Free in 30

According to an October 2021 CIBC report, the average down payment gift from a parent to their child has risen to a record high of $82,000. But while most of these gifts are cash savings, and not debt, is it still wise to gift your child a down payment for their first home? Could there be repercussions and if so, what? On today’s podcast, mortgage broker extraordinaire Ron Butler, gives first-hand insight into the rise of down payment gifts for first-time home buyers and discusses the increase in co-signers on mortgages. Ron also explains whether an interest rate hike will affect home prices and much, much more! Tune in.

Related Links:

CIBC Report – “Gifting for a down payment – perspective” by Benjamin Tal: https://economics.cibccm.com/cds?id=9dc124d8-9764-4c1d-83b4-9e89a5d568b8&flag=E

Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/

Podcast 334 – Mortgage & Home Equity Refinancing: What Are the Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0

Ron Butler on Twitter: https://twitter.com/ronmortgageguy

Butler Mortgage Website: https://www.butlermortgage.ca/

TIME STAMPS:

2:18 Today’s mortgage rates

3:27 Have people regretted moving away from the city?

6:24 How are bank approvals for mortgages?

8:15 Variable vs. Fixed Rates – what’s better?

13:55 Are down payment gifts a good idea?

17:38 How are parents affording down payment gifts?

18:26 Cautionary tales of borrowing to help kids and cosigning on mortgages

20:22 If we have 70s-type inflation, what’s going to happen?

23:54 Is the US-style mortgage better for customers?

25:36 Where does Ron see rates in the future?

28:35 Is there more diversity in mortgage providers these days? (A vs. B lenders)

31:10 Should parents be gifting down payments and practical advice