With rising prices and stricter mortgage rules, many first-time buyers in Canada rely on help from family. If you’re exploring buying a home with family support, the right approach can make ownership easier, faster, and more affordable. Here are the most common ways families help — and what you should know before you start.

1. Gifted Down Payment

One of the fastest ways family can help is through a down payment gift.
In Canada, a gifted down payment:

• Comes from an immediate family member

• Must be documented with a gift letter

• Does not require repayment

A larger down payment helps you qualify more easily and lowers your monthly mortgage costs.

2. Joint Ownership

Some buyers add a parent or family member to the title.
This can help you:

• Qualify for a larger mortgage

• Improve your credit profile

• Reduce financial pressure

But it requires clear discussions about ownership, roles, and long-term plans.

3. Co-signing a Mortgage

A family member can co-sign if your income or credit is not strong enough to qualify alone.
A co-signer helps lenders feel confident approving the loan.
It’s a simple way to increase your buying power — but the co-signer is also responsible if payments are missed.

4. Family Loan

Instead of borrowing from a bank, some families arrange private loans.
This option can offer:

• Lower interest

• Flexible repayment terms

• Easier qualification

All agreements should be written clearly to avoid confusion later.

5. Using the Home Buyers’ Plan (HBP)

Family can help you maximize government programs.
The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP (per person) to buy your first home.
Combined with family support, this makes ownership more reachable.

6. Help With Closing Costs

Closing costs add up:

• Land transfer tax

• Legal fees

• Inspections

• Adjustments

Family support covering these costs helps you keep more funds for your down payment or future repairs.

7. Practical Support After Closing

Family can also help beyond the transaction:

• Moving support

• Minor renovations

• Furnishings

• Temporary financial cushioning

This practical help makes the first year of ownership smoother and more affordable.

Conclusion

Buying a home with family support is becoming more common across Toronto and the GTA. Whether the help comes through a down payment gift, co-signing, joint ownership, or covering closing costs, family support can bridge the gap between renting and owning.
With clear communication and the right plan, you can move into your first home sooner and with more confidence.

FAQs

1. Do lenders accept gifted down payments in Canada?

Yes. Most lenders allow gifted down payments from immediate family members. A gift letter is required.

2. Does a co-signer need strong credit?

Yes. A co-signer must show good income, stable employment, and strong credit to support the application.

3. Can family help without being added to the mortgage?

Yes. They can give a gift, loan funds, or cover closing costs without being on title or the mortgage.

4. Are there tax implications for gifted money?

Canada does not tax gifted money, but legal and financial advice is recommended for large gifts.

5. Is joint ownership risky?

Joint ownership works well with clear agreements. Families should document responsibilities to avoid conflict later.