After all, most students can at least get loans to help fund their post-secondary education, but mortgages are much harder to access unless you have a lot of savings and a high income
When clients come in for advice about saving for their grandkids, financial planner Jason Heath says it’s usually about setting aside money for college. But with the housing market increasingly out of reach for many young people, he’s seeing more grandparents who want to help out with the cost of buying a home.
One challenge facing grandparents wanting to help out is that there are no tax-sheltered ways of saving specifically to help a family member buy a home. Grandparents who want to focus on helping their grandkids with purchasing a home could still make use of an RESP. The investment income and grant money is intended to be used for school, but RBC financial advisory consultant Lucas Gareri said the original contributions can be withdrawn on a tax-free basis and then gifted to a grandchild and repurposed for their FHSA.
High-income individuals can also consider using a family trust, although these can be complicated and have caveats, such as a requirement for them to close after 21 years.
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