Giving money to your children to buy a House or Condo - Gifted Money or Loan


Loan or Gift Money to your kids for their Down Payment

Are your kids struggling to afford a house of their own?

Are they still living at home trying to save money for their downpayment?


Many of our sons & daughters are having trouble affording their first home. 

They have a good job, they have good credit and they can afford their rent, thus they can afford a mortgage, but they don't have the required downpayment.

When purchasing a house or condo, your kids will need at minimum 5% of the purchase price plus closing costs.  The closing costs may NOT be gifted.  The mortgage lender will not allow the closing costs to be gifted. Those funds must be saved by the purchaser.

Fortunately the Down Payment CAN BE FULLY GIFTED

Thus, if you're thinking of giving your children an early inheritance or taking equity out of your home, then both those options can be done without any extra costs to you.  Give your kids, $20,000 to help them afford a condo or house.

Condos range from approximately, $250,000 and up

Houses range from approximately $350,000 and up

How much you give depends on the cost of the property.

  • Giving $20,000 can give your son or daughter a down payment for a $400,000 home
  • Giving $25,000 can give your kids a down payment for a $500,000 home
  • Give $30,000 and they can buy a house for $600,0000

This is asuming a 5% minimum down payment.

Loaning your kids money versus Giving them money

 Are you thinking of loaning your kids money as apposed to the giving them the money... 

The lending institution approves gifted money, but they are less likely to approve your son or daughters mortgage if your lending the money with the expectation of getting it back, especially if you're charging interest.  You may come to a personal arrangement whereby the funds given are considered part of your childs inheritance or some other personal arrangement.

The bank does not want their mortgage clients with more debt, thus loaning the downpayment is seen less favourably.

There is much more to know and learn. 

Call or Email - I will guide you and your children through the process.

Miguel Burgos

Direct:  (647) 700-0401

Your Real Estate Sales Representative



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Miguel Burgos

Miguel Burgos

Sales Representative
CENTURY 21 Heritage Group Ltd., Brokerage*
Contact Me

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