The Cons of Using the Bank of Mom and Dad
I admit that I found a recent survey commissioned for TD Canada Trust fascinating. The survey showed that twice as many parents as last year were contemplating purchasing a condo for their adult children. According to a recent article, there are just as many cons as pros in this particular situation.
On one side of the argument are the people who feel the expense is justified based on the fact that the price of real estate has drastically escalated; on the other side are the people who feel that adult children should make their own way in the world and should qualify for their own mortgage.
What about issues like divorce? Your child’s spouse may end up walking away with half of your investment. There are many questions that can arise, as with any major decision, make sure that you’re doing it for the right reasons.
