As the spring market gains momentum across the GTA, more first-time buyers are entering the conversation and for many families, that includes discussing financial support from parents. Often referred to as “The Bank of Mom & Dad,” family assistance can be incredibly helpful. But it’s important that everyone involved understands how it works, what the implications are, and how to approach it properly.

Here’s a practical guide to what all parties should know.

Why This Matters

First-time buyers play an important role in a healthy real estate market. In competitive spring conditions, family support can make the difference between entering the market or sitting on the sidelines. However, financial assistance should always be structured thoughtfully and transparently.

The Most Common Ways Parents Help

Gifted Down Payment

This is the most common form of assistance. Lenders will require a signed gift letter confirming:

• The funds are a true gift
• No repayment is expected
• The money is not borrowed

Buyers should know that a gifted down payment cannot be quietly repaid later without creating legal and lending issues.

Co-Signing the Mortgage

When a parent co-signs, their income is added to help the buyer qualify. However:

• The mortgage appears on the parent’s credit report
• It affects their debt ratios
• It may impact their ability to borrow in the future

This is a long-term financial commitment and should be treated as such.

Going on Title

In some cases, parents are added to title for qualification purposes. This can create

• Legal ownership implications
• Potential tax considerations
• Estate planning considerations

Professional advice from a lawyer and accountant is strongly recommended before proceeding this way.

Private Family Loans

If the assistance is intended to be repaid, it should be documented clearly with legal guidance. Verbal agreements between family members can lead to misunderstandings later.

Clarity protects relationships.

What Parents Should Consider

• How will this affect your retirement planning?
• Are expectations around repayment clearly discussed?
• Are all siblings aware and aligned?
• Have you spoken to your financial advisor?

Helping your child purchase a home is generous but it should never create financial strain or family tension.

What First-Time Buyers Should Consider

• Full transparency with your lender is essential.
• Understand whether support is a gift or a loan.
• Have clear conversations about expectations before submitting an offer.
• Remember that financial assistance often comes with emotional considerations as well.

Alignment early prevents conflict later.

Final Thoughts

There is nothing unusual about family support in today’s market. In fact, it has become increasingly common. The key is structure, documentation, and open communication. If your family is considering this path, whether you’re a parent exploring how to help, or a first-time buyer navigating the conversation, I’m always happy to sit down with everyone involved and walk through the process clearly and confidentially.

Spring brings opportunity. Informed decisions bring confidence.

GTA Homes Sales Up and Selling Prices Down in March

04/06/2026

Greater Toronto Area (GTA) resale housing market conditions tightened in March 2026 in comparison to last year. Sales were up year-over-year, while new listings were down. Selling prices were lower compared to March 2025 helping with affordability moving into the spring market.

“It’s encouraging to see an uptick in March home sales compared to last month and last year. This suggests that an increasing number of GTA households are looking to take advantage of improved affordability as we move into the spring market. Positive news on trade and geopolitical issues would help improve consumer confidence and home sales in the months ahead,” said TRREB President Daniel Steinfeld.

“Buyers continued to benefit from substantial negotiating power on price across major market segments in the last month. This explains why benchmark and average selling prices were down year-over-year. However, if market conditions continue to tighten, as they did in March, selling prices could start levelling off as we move through the remainder of 2026,” said TRREB Chief Information Officer Jason Mercer.

GTA REALTORS® reported 5,039 home sales through TRREB’s MLS® System in March 2026 – an increase of 1.7 per cent compared to March 2025. New listings entered into the MLS® System amounted to 14,442 – down by 16.7 per cent year-over-year.

On a seasonally adjusted basis, March 2026 home sales and new listings were up month-over-month compared to February 2026. Sales were up by a slightly greater monthly rate than new listings.

The MLS® Home Price Index (MLS® HPI) Composite benchmark was down by 7.4 per cent year-over-year in March 2026. The average selling price, at $1,017,796, was down by 6.7 per cent compared to March 2025.

On a month-over-month seasonally adjusted basis selling prices remained relatively flat, with the MLS® HPI Composite edging down and the average selling price edging up compared to February 2026.

“The GTA housing supply pipeline is in danger of running dry in the medium-to-long term. The federal and provincial governments announcements on HST and development charge relief were important affordability policy initiatives designed to spur new home sales and construction. It will be important to ensure that the right types of homes are built, namely ‘missing middle’ home types bridging the gap between condos and traditional single-family homes. This is contemplated in the recent Ontario Building Homes and Improving Transportation Infrastructure Act,” said TRREB CEO John DiMichele.

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