A new report from CIBC shows that 31% of first-time homebuyers now rely on financial help from family, up from 20% in 2015. Despite a cooling housing market, the amounts of these gifts continue to rise, averaging $115,000—a 73% increase from 2019. Those upgrading their homes also benefit from gifted funds, with 12% using these gifts, which average $167,000.

There is a strong correlation between gift sizes and home prices. Although home prices have dropped 14% from their COVID-19 peak, they remain 33% above pre-pandemic levels. This has facilitated larger gifts, likely driven by parents leveraging high home prices and downsizing.

Regionally, Ontario and British Columbia show higher reliance on gifts for first-time buyers, with 36% in these provinces compared to the national average of 31%. In BC, the average gift is $204,000, significantly higher than Ontario’s $128,000. For mover-uppers, the average gifts are $189,000 in Ontario and $230,000 in BC, although the likelihood of receiving a gift is consistent with the national average.

Overall, the trend of relying on family gifts for home purchases persists and grows, even cooler markets. While these gifts help mitigate the impact of housing inflation for some buyers, they also contribute to the widening wealth gap in Canada.