Even with the slowdown in the market this year, affordability is still an issue for first-time homebuyers. The benchmark price currently sits at $559,000 in Calgary and, while that’s down 4.6% from this time last year, it’s not the only hurdle they face. Stricter mortgage qualification requirements, an unemployment rate in Alberta of 7.8% as of October 2025 and the growing gap between salaries and home prices, have shifted the dream of purchasing a home from reality to fantasy for many young adults.

What better legacy to leave for your children than to help them overcome these challenges and realize the same pride of ownership you’ve experienced. If you’re looking for options to help them with their home purchase, consider the following:

1.    Down Payment: Giving your kids cash for a down payment is an obvious way to help. There’s no minimum or maximum amount, but it needs to be in their account long enough prior to them making the payment otherwise lenders will require a gift letter or proof of funds.

2.    Co-signing the Mortgage: This will improve your child’s debt-to-income ratio so that they can get approved for a mortgage that their own income doesn’t allow for. This option is possible if you have sufficient income from work or other sources and you’re willing to take joint financial responsibility for a mortgage.

3.    Early Inheritance: Gifting your children their inheritance early is an emerging trend with baby boomers. This allows parents to see their kids enjoy the benefits and to provide help at a time when their kids need it more.

4.    Pay off Debt: Helping your children pay down debt quicker will free up room for them to save money for a downpayment, will improve their debt servicing ratio and also give them more room to borrow for a mortgage.

5.    Increase Credit Score: Discuss ways to increase their credit score like paying bills on time, keeping credit card balances low, having a mix of credit types (revolving like a credit card & installment like a student loan), not opening too many new accounts and keeping older accounts in good standing. This is a longer-term strategy but will help because lenders are more likely to provide financing at a lower rate to someone with a higher credit score. 

6.    Joint Mortgage: This is different from co-signing as you would each have separate financial responsibilities as part of the home purchase agreement. This might be the right option if you want to co-own the home, and will each pay a portion of the mortgage every month.

7.    An Irrevocable Trust: With this option you would purchase the home and then place it into an irrevocable trust for your child. The benefits are that you would maintain ownership and not have to worry about your child qualifying with a lender. The trust would also protect the asset should your child get divorced and avoid probate and taxes when the property eventually transfers to your child.

8.    Inter-Family Mortgage: If you have the cash to finance the house, you can loan them those funds and draft a personal mortgage or loan agreement with terms of your choosing as the agreement would not be governed by a financial institution.

9.    Connect them with a great Mortgage Broker: Brokers work with multiple lenders and can ‘shop’ around for more financing options than a bank can offer.

Regardless of how you choose to help, consulting a lawyer and/or a mortgage broker is a good place to start. It will help you understand the pros and cons of each option and ensure that you’re making an informed decision.