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Are Your Kids Expecting You to Buy Them a House?

Are your kids paying rent, paying off student loans and saving for a house? That’s an impossible triad in most cities in Canada where home prices have soared 84% in 10 years. Home prices in Canada hit record highs in late 2013, according to the Teranet-National Bank house price index.

Industry data showed that the average home price was nearing $400,000 in December. That’s up 10% from a year earlier and 84% from December 2003, when the average price was $211,768. How are young people getting into the housing market in cities like Toronto and Vancouver? Their parents are providing them with a gift letter (the disclosure documents parents sign as part of the mortgage approval process that details their contribution to their kids), buying them a house or condo, or giving them the money for the down payment.

  • A 2013 survey for Bank of Montreal found that 27% of first-time buyers in Canada expect their parents or other family members to help them purchase a house.
  • Steven Fudge, a sales representative at Bosley Real Estate in Toronto, says that at least 50% of his buyers are bolstered by parental money.
  • Jackson Cunningham, a mortgage broker who specialises in first-time homebuyers in Vancouver, says that some 75% of his clients get help from their parents, typically with the down payment.
  • Parental home buying help has become so prevalent that it has made the first time buying market far more buoyant than many experts had expected in the wake of the tougher mortgage lending rules imposed by Ottawa over the last four years, according to CIBC economist Benjamin Tal.

No one is denying that our kids need help and that buying into the housing market in many cities in Canada is close to impossible for young people, but how can families help their kids without going broke themselves? Insurance for Children empowers parent and grandparents to create a solid financial foundation for their children and grandchildren. Our variety of customized insurance products has been used by Canadian parents to save for their children’s futures for over 100 years because they are secure, stable and safe, long term investments. Contact us today to find out how you can help pay for your child’s house, fund their education, open a business, or provide them with an additional source of retirement income.

Insurance for Children can help you to secure a solid financial future for your children and provide financial benefits for the whole family. Contact us today for a no fee, no obligation consultation and see for yourself what Insurance for Children can do for your family.

Sample illustration of Child Plan™ Cash and Insurance Values

Based on a Monthly Deposit of $225 per month

Age Accumulated Cash Value Life Insurance Value
20 $80,448 (Education) $770,802
35 $184,850 (House) $1,070,880
45 $325,714 (Security) $1,343,568
65 $964,321 (Retirement) $2,082,564

Sample illustration is based on a $225 monthly premium for twenty years, starting when the child is less than 1. Cash and life insurance values are based on the current dividend scale of 6.0% from a Canadian Life Insurance Company. This example is strictly for illustrative purposes only, the annual dividend scale is not guaranteed and values may differ.

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Request a Child Plan™ Illustration and see how much cash value your child will have for their education and for life.

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*illustrations are reflective of the annual premium amount

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