Top 5 Ways Ontario Parents Are Helping Their Kids Buy Homes in 2025

Owning a home in Ontario has never felt further out of reach for young buyers. Between high prices, strict mortgage rules, and rising living costs, many first-time buyers simply can’t qualify on their own — even with good jobs.

That’s why more parents are stepping in to help. Whether it’s through financial support, creative lending strategies, or smart co-ownership setups, families are finding new ways to make homeownership possible again.

Here are the five most effective (and safest) ways Ontario parents are helping their kids buy their first home in 2025.

1. Co-Signing or Guaranteeing the Mortgage

When your child has solid income but not quite enough to qualify, co-signing or guaranteeing can bridge the gap.

✅ How it helps:

• Adds your income and credit strength to the application

• Boosts your child’s borrowing power

• Gets them into the market sooner

⚠️ What to watch for: You’re legally responsible for the mortgage if payments are missed, and it can limit your own borrowing ability.

💡 Pro Tip: Work with a broker to model the impact before you commit — and ensure there’s a clear exit strategy once your child can qualify on their own.

👉 Learn more: Should You Co-Sign or Be a Guarantor for Your Child’s Mortgage?

2. Gifting the Down Payment

Sometimes, the simplest solution is a monetary gift to boost their down payment. A larger down payment not only helps them qualify but may also reduce mortgage insurance premiums.

✅ How it helps:

• Lowers their monthly payment

• Strengthens their application

• Reduces default insurance

⚠️ What to watch for: Lenders require a signed gift letter confirming the money doesn’t need to be repaid. If you plan to use your home equity for the gift, check how it impacts your financial picture.

3. Using Your Home Equity to Help

If you’ve built up significant equity, a Home Equity Line of Credit (HELOC) or small refinance can help fund your child’s purchase.

✅ How it helps:

• Provides flexible access to funds

• Keeps you in control of repayment terms

• Avoids putting your name on their mortgage

⚠️ What to watch for: HELOC rates are variable — rising interest rates can increase costs. Be clear about repayment expectations to keep the arrangement clean and professional.

4. Co-Ownership: Buying Together

Some families are purchasing jointly — especially when children can afford part of the cost but need help with the rest.

✅ How it helps:

• Allows your child to qualify sooner

• Builds family wealth together

• Shares both ownership and future appreciation

⚠️ What to watch for: Always have a co-ownership agreement that outlines who pays what, what happens if someone wants to sell, and how equity is divided.

💡 Pro Tip: This strategy can also be structured as a short-term investment — you buy together now, and your child buys you out later.

5. Exploring Alternatives to Co-Signing

If co-signing feels too risky, you still have great options.

Other smart approaches include:

• Helping your child pay off debt or improve their credit

• Matching their savings in a “down payment match” fund

• Leveraging programs like the First Home Savings Account (FHSA) or RRSP Home Buyers’ Plan

These can often make the difference between “not quite qualified” and “approved.”

Bonus Tip: Protect Yourself and Your Family Relationships

When money and family mix, emotions can run high. To keep things positive and professional:

• Put all agreements in writing

• Have open, honest conversations about expectations

• Work with professionals — a mortgage broker, lawyer, and accountant — who can structure things properly and protect everyone involved

Final Thoughts

Helping your kids buy a home in Ontario is one of the most meaningful financial gifts you can give — but it doesn’t have to put your own security at risk.

With the right structure, you can help them qualify confidently, build family wealth, and protect your peace of mind.

At LaframboiseMortgage.ca, we specialize in guiding families through these conversations — from first ideas to final signatures.

👉 Book a quick consultation today to find the right path for your family’s homeownership goals.