Mortgage Blog


Tips for helping children buy a home. Strategies to minimize tax implications, including the FHSA

June 13, 2023 | Posted by: Kiruban Kana

The article titled 'Tips for Helping Children Buy a Home. Strategies to minimize tax implications, including the FHSA' by Maddie Johnson provides valuable insights for parents or individuals interested in assisting their children in purchasing a home. Here are the key takeaways:

  1. Gifting Funds: Consider providing a financial gift to help your children with the down payment. The article highlights the importance of documenting the gift properly to comply with mortgage lender requirements and potential tax implications.
  2. Co-signing the Mortgage: Co-signing a mortgage can be an option to support your children's home purchase, especially if they have a limited credit history or low income. However, it is crucial to understand the implications and risks involved in becoming a co-signer.
  3. Family Loans: Instead of a traditional bank loan, parents can consider lending money to their children directly. This approach allows for greater flexibility in terms of repayment schedules and interest rates, but it is essential to formalize the agreement and consider potential tax implications.
  4. Shared Ownership: Jointly purchasing a property with your children can provide them with an opportunity to enter the housing market. However, careful consideration should be given to legal agreements, responsibilities, and exit strategies to protect everyone's interests.
  5. Planning for Taxes: The article emphasizes the significance of considering tax implications when helping children buy a home. Consultation with tax and legal professionals can ensure a thorough understanding of potential tax consequences, including capital gains tax and the principal residence exemption.
  6. Protecting Your Interests: It is essential to safeguard your investment when assisting children in buying a home. The article suggests establishing legal agreements, such as a co-ownership agreement or a loan agreement, to protect all parties involved.
  7. Discuss Financial Responsibility: Open and honest conversations about financial responsibility, ongoing expenses, and long-term financial planning are crucial when assisting children in purchasing a home. This helps set realistic expectations and promotes responsible financial habits.


The article provides valuable tips for parents or individuals interested in assisting their children in buying a home. It highlights various strategies such as gifting funds, co-signing the mortgage, family loans, shared ownership, and the importance of tax and legal considerations. With careful planning and open communication, parents can support their children's homeownership journey while protecting their own financial interests

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Article credit: Tips for helping children buy a home

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