376 – Should You Help Your Child Get a Mortgage? with Ron Butler

According to an October 2021 CIBC report, the average down payment gift from a parent to their child has risen to a record high of $82,000. But while most of these gifts are cash savings, and not debt, is it still wise to gift your child a down payment for their first home? Could there be repercussions and if so, what? On today’s podcast, mortgage broker extraordinaire Ron Butler, gives first-hand insight into the rise of down payment gifts for first-time home buyers and discusses the increase in co-signers on mortgages. Ron also explains whether an interest rate hike will affect home prices and much, much more! Tune in.   Related Links:   CIBC Report – “Gifting for a down payment – perspective” by Benjamin Tal: https://economics.cibccm.com/cds?id=9dc124d8-9764-4c1d-83b4-9e89a5d568b8&flag;=E Hoyes Michalos Homeowners Bankruptcy Index: https://www.hoyes.com/press/homeowner-bankruptcy-index/ Podcast 334 – Mortgage & Home Equity Refinancing: What Are the Risks in 2021? https://www.youtube.com/watch?v=-CSt5J7CIQ0 Ron Butler on Twitter: https://twitter.com/ronmortgageguy Butler Mortgage Website: https://www.butlermortgage.ca/   TIME STAMPS:   2:18 Today’s mortgage rates 3:27 Have people regretted moving away from the city? 6:24 How are bank approvals for mortgages? 8:15 Variable vs. Fixed Rates – what’s better? 13:55 Are down payment gifts a good idea? 17:38 How are parents affording down payment gifts? 18:26 Cautionary tales of borrowing to help kids and cosigning on mortgages 20:22 If we have 70s-type inflation, what’s going to happen? 23:54 Is the US-style mortgage better for customers? 25:36 Where does Ron see rates in the future? 28:35 Is there more diversity in mortgage providers these days? (A vs. B lenders) 31:10 Should parents be gifting down payments and practical advice