The Bank Of Mom And Dad

By Brian Kondo

Monday, April 15, 2024

The Bank Of Mom And Dad

It might not be a common topic of conversation, but the Bank of Mom and Dad provides mortgages and financial aid to more people than you think. Sometimes The Bank Of Mom and Dad help with a down payment as a gift, other times they can work with your real estate lawyer to set up a second mortgage in their name. Either way, there are lots of benefits to consider - here are some of them:

A gift can be a great way to ensure that money is staying within the family

A second mortgage can benefit parents as much as children. A second mortgage can secure a parent's money in case they need it and ensures a child's significant other isn't entitled to half the funds. 

• A loan from The Bank of Mom and Dad can be interest free. It can be paid back monthly or can be paid in one lump sum when the mortgage is paid off or when the home is sold - which won't affect the child's cash flow.

If you are thinking about going to The Bank of Mom and Dad to supplement your savings when buying a house, consider the following:


Plan Far Ahead Before Asking For Anything


It is very unlikely you will be successful asking your parents for something out of the blue. Instead, create a timeline over a few months where you can demonstrate your enthusiasm for purchasing a house. Involve them in the process of house hunting and show them what you are capable of affording and how you will go about it.


Make An Investment Pitch

Maybe creating a Powerpoint presentation is the way to go. Maybe it's just a long conversation at the dinner table with cue cards. Either way, demonstrate your research. Show what someone with your salary can afford across various neighbourhoods and then show them what you can afford with various contributions from your parents. You can also illustrate appreciation values of properties over the past 5 years to show them a possibility for a return on their investment.


Demonstrate You Are Worthy

Some parents need some coaxing before they open up their checkbook. An investor will need to look at projections that are founded in commitment. Showing a five and ten year career financial plan demonstrates grit. You want to instill confidence in your parents that you are going to buy a financially smart home for both of you and not run away and travel with their money. You can suggest signing a contract with your parents in front of a lawyer that you will follow your financial plan to reinforce your commitment.


Buying a property with the help of your parents is possible and should be discussed more! If you are thinking that the way for you to get onto the property ladder is with help from The Bank of Mom and Dad please reach out to me. I would love to help you get the home of your dreams in a way that makes both you and your parents happy.


Thanks for reading today’s BLOG!!!

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office

905-426-7484 direct


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