Buying a first home in Ontario has never required more strategy. Higher prices, tighter qualification rules, and stretched savings mean even well-prepared first-time buyers often look for creative (and responsible) ways to boost their buying power.

One approach that’s gaining traction—especially among my clients—is bringing parents into the process in a structured way.

Let’s break down the strategies that are working.

Why Involving Parents Works Today

Parents often want to help, but they’re unsure of the safest path. With the right structure, they can support their kids without risking their own retirement or financial stability.

The most common and effective strategies:

1. A Gifted Down Payment

The simplest approach. Parents gift funds to help with the down payment.

Why it works:

• Immediately reduces CMHC/default insurance costs
• Boosts purchase power
• Strengthens the offer in a competitive market
• Zero ongoing obligation for the parent

Where it’s most effective: Buyers looking to jump from a condo to a townhouse, or to get out of renting faster.

2. The Parental Co-Sign Strategy

Parents add their income and credit strength to the application to help the child qualify.

Why it works:

• Forces no upfront cash investment
• Helps when income is strong but debt-service ratios are tight
• Can be temporary—parents can be removed later through refinance once the buyer’s income grows and they qualify on their own

3. Joint Ownership, Done Properly

Some parents prefer a more formal investment role.

Why it works:

• Parents treat the down payment as an investment
• Children get into the market sooner
• Everyone benefits from value appreciation

Best for: Professional families thinking long-term—e.g., buying a property the child may later rent out.

4. Short-Term Equity Loan to Boost the Down Payment

Often overlooked but extremely practical.

Parents lend—rather than gift—down payment funds for 1–3 years.

Why it works:

• Keeps parents’ retirement plans intact
• Helps the child reach 20% to avoid CMHC fees
• Can be repaid once income increases or property is refinanced

If you or someone you know is considering involving a parent in a home purchase, I can map out the best strategy for the situation.

Whether it’s gifting, co-signing, lending, or joint ownership, we can evaluate the best way forward.