Live Together for a Few Years (Prepurchase)
If house values have increased, so have rents. It can be hard for young adults to save towards a down payment. So why not invite your child to move back home for a couple of months, or years, to allow them to economize?
If you know they’re a bit of a spendthrift, you could even ask that they pay you rent, the amount of which you will deposit in a savings account or a TESA to grow their money for them.
Co-Sign the Mortgage
If you are willing to assume some financial risk, you might want to consider co-signing the mortgage. But first, you should make sure your child can afford everything else that comes with homeownership (taxes, condo fees as applicable, electricity fees, mortgage payments, etc.).
In this way, your child (with or without a spouse) can become a property owner despite not having a very large down payment. Be aware that being a co-signer means you are just as responsible for the loan as your adult child. If they can’t manage to pay the mortgage, the lender will turn to you.
Suggest That Siblings Buy Together
A first home doesn’t have to be perfect. In fact, it can simply the initial rung in climbing the real estate ladder. With this in mind, propose this savvy solution: that your two (or more) children purchase real estate together.
They are more likely to obtain financing with two incomes and their monthly budget won’t be so tight. When they resell in a few years, they will each end up with a good-sized down payment.