Parents assisting children with first house

[MoneyGuy]

I'm researching the following:

If you're a parent with adult children who have bought a first house or if you're the adult child, how much did the parents give as a cash gift to assist (with no repayment required).

Also, was there a loan provided to be repaid? Again, if you're willing to disclose it, how much was lent?

I'm interested in financial assistance provided for a first house only.

Feel free to add any relevant commentary, such as parents' ability to assist financially. Obviously, some have lots of money and giving $20,000 isn't a big deal, but for others a $5,000 gift may be a big sacrifice. That kind of thing....

I thank everyone who is willing to contribute. PMs also gratefully accepted.

[DuffMan]

My parents gave me nothing, or my brothers.
My wifes parents gave her nothing, but they did give her sister 3 acres of land I think with a ####ty house on it.
I'll probably give my kid nothing.

[malcolmk14]

My sisters in-laws gave them $25k to be repaid at $2.5k a month until the house is built next fall.

My parents have offered me a down payment but I've refused it. I want to do it on my own.

[btimbit]

I dated a girl who's parents essentially bought her first house. She pays her own mortgage, but her parents made the downpayment so that her mortgage was the same as the rent she was paying at the time. 2300 sq ft house, one 24 year old living in it alone. Paying $1250 a month.

Don't know the other details, she told me what the down payment was and some of the terms and rates but I've since forgotten, this was 2 years ago

[malcolmk14]

Double post. Oops.

[troutman]

We see this quite often.

One scenario is where the parents guarantee the mortgage, or they go on title with the children so that they can qualify.

In some cases the parents will make a "loan" to the child. Often there is no expectation of repayment, or the terms are very generous. Some parents will have the kid sign a promissory note which can be registered as a caveat on the title. You might see that where the parents have more than one child. The parents may also amend their wills to deal with gifts/loans made to one child and not to others.

[Coach]

My Dad put the down payment on my house (was then able to do 5% and it amounted to about 12k), I was 21 at the time and going to school. He also helped me here and there when I needed it.

My suggestion, if your kid is going to school, the stress of running a house, finding/dealing with roommates, fixing things, etc.. is a lot for someone who's going through the post-secondary grind. And unless you really think your kid can hanlde it I would recommend putting it off. in the long run it is good and saved me money, but in the short run, man was it hard to keep track of all the things I needed to while trying to finish school on top of other commitments. Make sure you go through it very thoroughly with the kid first. But you're the MoneyGuy So I'm sure you're good with stuff like that haha.

EDIT: I will say in reference to btimbit's story. Make sure it's with the intention of having roommates pay to live there. I got a place for 3 people (including myself) and my renteres income was my largest portion of income while I was in school. Just buying it outright and letting them live there alone I would say would be detrimental to the child.

[fundmark19]

My parents took half of everything I earned working from the time I was 14 until I was 18. At 18 they charged me $500.00 a month in rent (which I upped to what ever I could put away) and when I wanted to buy my condo they gave the money back to me for my down payment. My dad co-signed my mortgage (he did that same for my step-sister as well as my brother and now my sister as well. He has been removed from all properties now) but later I got my buddy to buy into my condo with me.

They didn't give me any other loan money for any down payment just what I had saved up over the years of them garnishing my wages and charging me rent. I bought my condo at 19 and moved out at 21

[CMPunk]

Zero dollars....did it all myself.

[T@T]

Originally Posted by btimbit

I dated a girl who's parents essentially bought her first house. She pays her own mortgage, but her parents made the downpayment so that her mortgage was the same as the rent she was paying at the time. 2300 sq ft house, one 24 year old living in it alone. Paying $1250 a month.

Don't know the other details, she told me what the down payment was and some of the terms and rates but I've since forgotten, this was 2 years ago

You should have kept such a fine find!

[Ashartus]

My parents lent me $5000 to help buy my first place. Technically it was a gift since mortgage rules at the time didn't allow me to borrow the deposit (I actually had to provide the bank a note from my parents saying it wasn't a loan), but with an unwritten agreement that I'd pay them back over the next couple of years.

[fundmark19]

Originally Posted by fotze

How much did all that add up to?

My dp was about $15,000 I only did 5% but I had money left over still that I kept for buying my next properties so I don't remember the exact figure they had but I would guess it was in 20 K range at the time of DP

[MarchHare]

My parents gave me and my wife a card on our wedding day. In it, they wrote that their wedding present to us would be $10,000 towards the purchase of our first home when we were ready to buy. Eight months later, we bought our condo, using that $10k plus another $30k of our own money (mostly withdrawn from our RRSPs using the Home Buyers' Plan) for the down payment. We had to provide signed documentation to the mortgage company proving that the $10,000 from my parents was a gift, not a loan that would have to be repaid.

[Dion]

My parents gave me nothing and said you're on your own kid.

[CedarMeter]

Originally Posted by CMPunk

Zero dollars....did it all myself.

You go Glen Coco!!


My parents gave me 30 grand to put on a house that was 100 grand back in 95.. Once again thank you Mom and Dad!

[Hugh Jahrmes]

My parents paid me back the 3000 I lent them to buy my little brother a truck. That was nice haha.

[Wormius]

I didn't receive anything from my parents.

[Brannigans Law]

my parents gave me 5000 dollars towards the 20,000 downpayment. I didn't have to take it, but doing so let me buy a lot of new furniture I wouldn't have been able to have otherwise right away.

[btimbit]

Originally Posted by T@T

You should have kept such a fine find!

Eventually the fact that she was bat #### crazy played into it I had already bought my own house (by pure coincidence was just 3 blocks away, didn't know her at the time)

Originally Posted by MattyC

EDIT: I will say in reference to btimbit's story. Make sure it's with the intention of having roommates pay to live there. I got a place for 3 people (including myself) and my renteres income was my largest portion of income while I was in school. Just buying it outright and letting them live there alone I would say would be detrimental to the child.

Should add that in this case she didn't live there until after she was done school and working full time. Other than that I agree 100%

[Phaneufenstein]

In 2011 my mom provided me with a "gift" down payment which I immediately returned once the mortgage went through by taking out the money on a line of credit.
I had zero savings...

Mortgage, insurance, utilities + 15K on the LOC were a tough go initially, but I got a roommate and suddenly it wasn't so bad.

Mind you, I was 27 at the time and finally started pulling in decent coin.

Once the old lady moved in with me in 2012 and roommate moved out, it became even easier.

Dual income is the bomb!