With housing prices rising across British Columbia — and especially in Kelowna — many young adults are finding it difficult to get a foot on the property ladder. For parents who can help, the question becomes: what’s the best (and safest) way to support our kids in buying their first home?

There are several ways to contribute, but each comes with unique benefits and considerations. Let’s look at the most common strategies Canadian families use — and how to do it right.

1️⃣ Gift a Down Payment

One of the simplest and most common ways parents help is by gifting money for a down payment.

What to know:

• In Canada, down payment gifts must be non-repayable. Lenders require a gift letter confirming this.
• The funds must usually come from an immediate family member (parent, grandparent, or sibling).
• The money should be transferred before the mortgage closes, and you’ll need to show a paper trail.

Tip: Work with a mortgage broker early to make sure the lender accepts your gift funds and that documentation is handled properly.

2️⃣ Become a Co-Signer or Guarantor

If your child’s income or credit isn’t strong enough to qualify for a mortgage alone, you may choose to co-sign or guarantee their mortgage.

The difference:

• A co-signer is added directly to the mortgage and title.
• A guarantor promises to cover payments if the borrower defaults but doesn’t usually go on the title.

Pros:

• Helps your child qualify for a larger mortgage or better rate.
• Can be removed later once your child’s financial profile improves.

Considerations:
You’ll share responsibility for the loan, so it will appear on your credit report and may affect your borrowing power. Always discuss implications with your mortgage advisor.

3️⃣ Provide a Family Loan

Instead of a gift, some parents prefer to loan funds to their children — for tax reasons or to maintain structure.

How it works:

• The loan can be interest-free or low-interest.
• A formal loan agreement should outline repayment terms.
• Lenders will still need to see documentation of the loan.

Tip: Have the agreement drafted by a lawyer to protect both parties and clarify whether repayment is expected.

4️⃣ Buy Together — Shared Ownership

Co-ownership is becoming more popular, especially in markets like Kelowna. Parents and children buy a home together, either as joint tenants or tenants in common.

Benefits:

• Shared equity and lower individual costs.
• Opportunity to build wealth together as property values rise.

Considerations:

• You’ll need a clear agreement on exit plans, maintenance responsibilities, and tax implications.
• If one party wants to sell, the other may need to refinance to buy them out.

5️⃣ Use Home Equity to Help

Parents who already own property can leverage home equity to help their kids — often through a refinance, home equity line of credit (HELOC), or reverse mortgage (if retired).

Pros:

• Access funds without selling your own home.
• Can provide down payment or closing cost support.

Important:
A mortgage broker can calculate how much equity you can safely use without affecting your retirement or financial goals.

💡 Before You Help — Talk About It Openly

Money conversations can be emotional, especially between family members. Set expectations early about repayment, ownership, and future responsibilities.

Also consider:

• How will this affect your own financial plans or retirement?
• What happens if your child sells or moves?
• Is everyone on the same page about the long-term plan?

A clear, transparent discussion (and written agreement when needed) can prevent misunderstandings later.

🏠 Final Thoughts

Helping your kids buy their first home can be one of the most rewarding financial gifts you’ll ever give — but it should be done strategically. From down payment gifts to co-signing, there are smart, lender-approved ways to make it happen safely.

A Kelowna mortgage broker can help you explore every option, compare lenders, and find the right structure for your family.

📞 Let’s Build a Plan That Works for You

Whether you’re planning to gift, co-sign, or use home equity, I can help you navigate the process from start to finish.

💬 Contact Annette Perry, Mortgage Broker at Dominion Lending Centres – White House Mortgages, to create a personalized family mortgage plan.

Written by Annette Perry | Mortgage Broker, Dominion Lending Centres – White House Mortgages