They say home is where the heart is.
But nowadays home is where the help is.
Despite financial concerns more than half of Canadians who were polled have said they would financially support loved ones purchasing or renting a home during the pandemic. You Can Learn More Here
- 36% of non-homeowners under 40 have given up on their dream of owning a home.
- 62% of Canadians say most people will be priced out of the housing market within the next decade.
You can read more here and here.
As parents, of course, we want our children to be happy and have a great life.
Owning a home is an accomplishment and something to be very proud of – especially for young families.
However, according to CREA, the average house price in Canada was $678,091 as of February 2021.
This price rises to $864,159 and $887,695 in Ontario and British Columbia and decreases to $290,789 and $224,785 in Saskatchewan and New Brunswick.
Canadians willing to assist would provide an average of just over $60,000, with fewer than half expecting to be paid back.
The math isn’t on your side.
You’re 35 today. So, when your child is 30 and you’re 65 they will need and expect some help to buy their first home.
Do you help?
Where will the funds come from?
What will you expect in return from each child?
What if you can’t help all your kids equally?
What do you say to the child you can’t help?
What if helping your child buy their first house means you can’t retire?
These are all hard questions with really hard answers.
Today your child is 2.
In 16 years they’ll expect help with university or other education plans.
When they are 30 they’ll expect help with a wedding.
And when they are 35 they’ll expect help with their first home.
You Have Three Choices
- Don’t help and watch them struggle financially.
- Take money from your RRSP when they are 35, pay all the taxes and give it to each one, leaving you with a reduced lifestyle.
- Use the government tax-free Canada Child Benefit to invest in their future dreams and leave your retirement intact.
Families who met with a Child Plan advisor have learned how using 50% of their Canada Child Benefit provides them with a simple free solution to their children’s future dreams while leaving their retirement untouched.
With the Child Plan, each of your children will get a tax-free annual dividend for life.
You can transfer their plan to each of them anytime after they are over 18 and they can use the cash value of their Child Plan for any university or education program in the world.
There are no restrictions like those in the RESP.
They can also use the money to buy their first home, open a business (if that’s their dream), and have financial security for life!
All with free money from the government.
Child Plan – the fastest growing alternative to the RESP.