It’s challenging at best for young adults to be able to purchase property these days, especially in high priced real estate markets like Toronto.
With this in mind, there’s a push at the Canadian Real Estate Association for federal changes so parents could use their RRSPs to help their children buy a home.
Under the current plan, first-time buyers can withdraw up to $25,000 from their RRSPs to contribute to the purchase of a home. The tax-free loan must generally be repaid within 15 years.
CREA says extending the Home Buyers’ Plan to allow for intergenerational RRSPs would ease the financial burden many young Canadians face.
The association reported earlier this month that the national average price for a home sold in October was more than $500,000 – up five per cent from last year.
It says given the recent, rapid increase in home prices, many parents are already giving their children a gift of money as a down payment for a home.