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8 Friday, May 26, 2023brooklintowncrier.com Direct: 905 655 7236 Office: 905 239 4800 Eleanor KingEleanor King B. N. B. N. RealtorRealtor Maurice KingMaurice King B.E.D.S., B.Arch.B.E.D.S., B.Arch. RealtorRealtor What others are saying... "Trusted advisor!" | "Customer Focused!" | "Local Expert!" | "Professional!" | "Knowledgeable!" "Hard Working!" | "Accessible!" | "Dependable!" | "Patient!" | "Reliable!" "Well Prepared!" | "Honest!" | "Strong Negotiator!" "Superb Service!" Want to know what's happening in the market? Want to Know the Value of your House? Call Us Now! 905.655.7236 There is no cost or obligation! Your Trusted Source to Buy, Sell or Invest! 905.655.7236 view 1000's of Homes for sale at KingHomeTeam.com or KingOfBrooklin.com MARKETING YOUR HOME FOR ALL IT IS WORTH! Why Didn't My House Sell?Go to KingHomeTeam.com/blog for answers.It's a great time to Buy!Homes are on Sale! Coming Soon! Too Late Bungaloft... SOLD! **Photo similar to house being built Not intended to solicit those under contract. BANKING ON MOM AND DAD Many new homebuyers are counting on the Bank of Mom and Dad to purchase their first house. In fact, 62 per cent of homebuyers are receiving financial assistance from family to achieve their homeownership dreams, according to Mortgage Professionals Canada's Housing Market Report: 2022 Year-End Consumer Survey and Outlook, released in March. That's perhaps no surprise. "With interest rate increases, the stress test and the price of homes in general, we are seeing this in our business," Mortgage Broker Denise Laframboise of Laframboise Mortgage in Brooklin tells us. "I think it is pretty normal for any parent to look at this situation and wonder how our kids would ever be able to buy a home without our help." Still, the Housing Market Report found Canadian homeownership remains strong. Nearly 80 per cent of respondents see real estate as a good long-term investment - a percentage that remains virtually unchanged from previous surveys. But the current market volatility underscores the value of speaking to a mortgage broker, the report adds. A mortgage should be tailor-fit to meet the homebuyer where they're at and where they will be. It is fundamentally about the ability to pay. "There are a few ways we are seeing parents help their kids," Denise reports. Depending on your circumstances, each has pros and cons. Let's take a look: Gifting a down payment. A parent provides down payment money to their child to use for their home purchase. Parents will need to sign to certify that the funds are a gift, not a loan. The money can be gifted from savings, a line of credit or a mortgage on their own home. "We are seeing more parents consider doing a reverse mortgage on their homes for this purpose as there are no payments required on a reverse mortgage, so it doesn't significantly impact the parents' monthly cash flow," Denise explains. "It is likely that we are seeing more of this type of financing because parents are living longer or wanting to stay in their home longer than they used to and they might want to gift kids equity in their home without having to sell." Co-signing. In this scenario, parents use their income and ability to qualify for a mortgage to help their children qualify. There are numerous things to consider, including how long the parents will need to remain part of the transaction and if co-signing will impact anything the parents want to qualify for with their own situation in the future. It's also important to consider if a trust agreement is required to impact future capital gains or land transfer tax implications. If you're considering this option, discuss trust agreements with your accountant and lawyer. Co-ownership. More and more, parents and children are teaming up to purchase a property together - ideally a duplex because the children can live in one part of the home and parents can live in the other or it can be used to earn rental income. "Considering a property where there is additional income coming in - like a rental suite - would help offset the risk for all parties," Denise says. Before you commit to gifting or lending money to purchase a house, The King Home Team: Royal Heritage Realty encourages you to be aware of potential risks to ensure your interests are protected. Please visit our website at www.kinghometeam. com for a longer version of this article that includes questions you should ask before committing to help an adult child purchase a home and links to helpful resources. Search 1000's of Homes. Find SOLD details in your neighbourhood at search.Look4DurhamHomes.com Too Late ... 1/2 Acre Lot SOLD! Too Late ... SOLD! Thinking of Making a Move? Call us for similar results! 905.409.6730 Too Late ... SOLD!