The gift can come from your equity
A home equity line of credit or a refinance can fund the down payment gift while your investments and retirement accounts stay where they are.
Help your kids buy
Your kids are sitting out this market, and helping doesn't have to mean cashing out investments or waiting for the estate. The equity in the home you own can fund the gift, structured around your retirement first.
You'll be speaking with Jenny Thanks, you're all set. Jenny Ho Mortgages gets back to you directly to set things up.
Prefer to talk? Call 647-921-9657.
Most parents assume helping with a down payment means dipping into savings, or that the kids simply wait for the will. There's a middle path, and it starts with the home you already own.
A home equity line of credit or a refinance can fund the down payment gift while your investments and retirement accounts stay where they are.
Cashing out an RRSP to help can mean withholding tax. Money borrowed against your home is not income, and there is no legal limit or tax on the gift itself. Your accountant confirms how that fits your own picture before anything moves.
Jenny and your financial planner check that you can help comfortably before anyone talks products. If the numbers say it would stretch you, she'll say so plainly.
“Everything was so smooth. I can’t say enough about Jenny, and I tell everyone how great she was. We are all moved in and the renos are already underway.”
You open a home equity line of credit or refinance the mortgage on your own home, draw the gift amount, and sign a gift letter for your child's mortgage application. Jenny arranges both sides, your equity and their purchase mortgage, so the two close together instead of in the wrong order.
Borrowed money is not income, so drawing on a home equity line of credit or a refinance does not create a taxable event the way cashing out an RRSP can. Interest, structure and your own situation still matter, so Jenny brings your accountant or financial planner into the decision before anything is signed. Nothing on this page is tax advice.
In Canada a home equity line of credit is generally capped at 65 percent of your home's appraised value, and combined borrowing through a refinance can reach 80 percent, less anything you still owe. An appraisal sets the number that actually applies to your home, and Jenny walks you through it before you commit to anything.
Usually not, if you can qualify for a home equity line of credit. A HELOC is interest-only and flexible, and you stay in control of when it's repaid. A reverse mortgage has no monthly payment, but the balance compounds and erodes what's left in the estate, which is why most families treat it as a last resort. Jenny will walk through both honestly and tell you which one actually fits.
That's the first question Jenny asks, before any product comes up. She reviews it with you and your financial planner, and if the numbers say helping would stretch you, she'll tell you plainly and look at smaller or later options instead.
Yes. Plenty of these conversations start with the kids. Jenny can meet you together or separately, in person at the Orbis office in Vaughan or virtually, handle the purchase mortgage for your child, and bring the equity conversation to you when everyone is ready.
Lenders prefer the gift to come from an immediate family member: a parent, grandparent, sibling or child. That's what makes it read as a genuine gift rather than a loan. A gift from someone outside immediate family is usually still possible, but the lender will want documented proof of the relationship, and may decline it regardless. Jenny confirms what your child's specific lender will accept before anything is drawn.
Most lenders want it to name where the money came from, the exact amount, your relationship to your child, the date, and an explicit statement that it is a down payment gift with no expectation of repayment. Lenders also generally want to see the funds land in your child's account before closing. Jenny provides the letter format her lenders actually accept, so it isn't rejected for a missing detail.
Every purchase still needs its own minimum down payment, generally 5 percent of the price. Your gift can cover that in full. If your child is self-employed, lenders typically also want to see at least 5 percent of the down payment clearly sourced from their own earnings and sitting in their account for about 90 days before applying, with the rest coming from your gift. Jenny checks which rule applies to your child's situation before you draw anything.
No. The first conversation costs nothing and carries no obligation. Jenny walks through how the gift would work for your family, and nothing moves forward unless you decide it should.
Leave your details and Jenny Ho Mortgages gets back to you directly to set up a time that works for you.