Posted on
February 19, 2025
by
Harold Spicer
Why Helping Your Adult Kids Buy Their First Home in Calgary is a Smart Move
Owning a home is a major milestone, but in today’s competitive Calgary real estate market, young buyers are finding it increasingly difficult to take that first step. With rising home prices, stricter mortgage qualifications, and increasing rental costs, many parents are stepping in to give their adult children a boost into homeownership. If you're considering helping your kids buy their first home, here are the key reasons why it can be a great decision—for both them and you.
1. Building Generational Wealth
Homeownership is one of the most effective ways to build and transfer wealth. By assisting your children in purchasing their first home, you’re not just giving them a place to live—you’re helping them build equity and secure their financial future.
2. Easing the Burden of Rising Housing Costs
The Calgary market has seen steady price growth, making it harder for first-time buyers to save enough for a down payment while also covering living expenses. A little help—whether it’s with the down payment, co-signing the mortgage, or contributing to closing costs—can make a big difference.
3. Avoiding the Rental Trap
With Calgary’s rental market becoming increasingly expensive, many young professionals are spending a significant portion of their income on rent without building any long-term wealth. Owning a home allows them to put their money toward an asset rather than paying someone else's mortgage.
4. Smart Use of Home Equity
Many parents in Calgary have built substantial equity in their homes over the years. Utilizing a home equity line of credit (HELOC) or gifting a portion of your equity can be a strategic way to help your kids enter the housing market while keeping long-term financial goals in mind.
5. Providing Stability and Long-Term Benefits
Homeownership offers a level of financial and personal stability that renting simply cannot. It allows young buyers to establish roots, build community ties, and take advantage of long-term property appreciation—especially in desirable Calgary neighbourhoods.
6. Potential Tax and Investment Advantages
Depending on how you structure your assistance, there may be potential tax benefits or investment opportunities. Whether it’s purchasing a home jointly, setting up a rental suite for additional income, or structuring the assistance as a loan, there are many strategies to consider. Consulting with a financial advisor can help you determine the best approach for your family.
7. It’s a Competitive Market – Act Early
With inventory fluctuating and interest rates impacting affordability, getting into the market sooner rather than later can be beneficial. By helping your kids buy a home now, they may avoid even higher prices and tougher lending conditions in the future.
How You Can Help
If you’re ready to assist your kids in buying their first home, here are a few ways you can help:
Gift a down payment – This can help them qualify for a better mortgage rate and reduce their borrowing costs.
Co-sign the mortgage – This increases their borrowing power but comes with shared financial responsibility.
Contribute to closing costs – Helping with legal fees, land transfer taxes, and other closing costs can ease their transition.
Help with budgeting & financial education – Guiding them through mortgage affordability and homeownership responsibilities is just as valuable as financial assistance.
Final Thoughts
Helping your kids buy their first home is a major decision, but in Calgary’s evolving market, it can be a strategic and rewarding investment for your family’s future. If you’re considering this move, working with a trusted real estate professional can ensure you explore the best options tailored to your situation.
Looking for guidance on how to navigate this process? Let’s connect! Whether you need market insights, mortgage advice, or assistance finding the perfect property, I’m here to help.
📩 info@haroldspicer.com
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