Stella Reid and her ex-husband recently purchased a Newmarket condo for their 41-year-old daughter and 21-year-old grandson.
They were in a position to help, Reid said, by using the proceeds from the sale of an Aurora condo they purchased for their daughter several years ago "when prices were more reasonable."
The Aurora condo "was what we could afford" but it was too small for their daughter who wanted to move to Newmarket.
Though the sale made a profit it wasn't enough to cover the full cost of the new condo so Reid and her ex-husband used their savings to pay the remainder.
"We were fortunate to take it not out of our pension, but out of our savings."
Even with their savings, they would "absolutely not" be able to purchase a condo for their daughter without money from the sale, Reid said. Neither they nor their daughter would have qualified for a mortgage.
"We didn't have that kind of cash to pay for it, we did at the time but not now, it was not within reach."
According to a survey conducted by Abacus Data for the Ontario Real Estate Association (OREA), Reid's situation is not uncommon with four in 10 parents of young adults aged 18 to 38 helping their children with the purchase of a home.
Of those who helped, 44 per cent dipped into their own general savings, with 15 per cent borrowing from their own retirement savings or investments.
Peter Kaliszek, a sales representative with Century 21 Heritage Group Ltd. in Newmarket, said it's not the norm but he does see it happening.
One example, he said, is when parents, who may have retired to a home outside the GTA, decide to downsize and use money from the sale of their home to help their children purchase a home.
The poll shows nearly 90 per cent of Ontario parents agree that it is more difficult to buy a home today compared to when they were their children's age, citing the high cost of housing and the difficulty of saving for a down payment as major factors.
Reid and her then husband purchased their first home in the Toronto Beaches area in 1966 when both were in their early 20s. The semi-detached home was purchased for $15,500 with $500 down.
"That's not even a down payment today," she said. "In those days, everyone was getting married young and everybody had a down payment because it was only a few thousand dollars and houses were $20,000. . .In those days, as long as you were conscientious and worked hard... If you wanted to get ahead, it was definitely easier and now it's not possible for the kids."
Half a century ago, the ratio of income to price houses was much more manageable, Kaliszek said, but purchasing a home in your 20s nowadays is just not something he sees.
"Interest rates were maybe a little higher but you still could afford to make a payment, it wasn't a significant amount out of your monthly budget to pay for a mortgage."
The cost of homes today, he added, "is actually crazy."
When searching for a condo, the prices kept climbing, so when they saw the right one they "grabbed it," Reid said.
She is fortunate to be able to help her daughter and grandson live in a home they like because these days, the down payment alone is difficult.
"Prices are three times higher than they were just a few years ago for goodness sake."
Reid understands how difficult it is to buy a home today and said she would rather be around to see her family happy and settled now than have them wait to inherit money.
"I believe in helping kids when they need it, not when you're dead. When you're dead, most of the times they're established, nowadays it's different."
The poll was conducted between Jan. 20 and 25 and 20,000 Ontarian adults participated.
