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How to teach your kids about life: Don’t help them buy a house

A for-sale sign staked into the front lawn of a Toronto house.

Kevin Van Paassen/The Globe and Mail

By Rob Carrick

You may know the name Sean Cooper – he's the guy who paid off his Toronto mortgage in just three years, by age 30. Now, he's a personal finance blogger with some strong views on how his fellow millennials are affording their own homes. He says a lot of young adults expect to get help from their parents, and that this has to stop.

Cooper appeals directly to parents to show their kids some tough love and not provide help with down payments. Still, he does relent a bit at one point and says it may be okay to top up down payments to 20 per cent to help buyers avoid the cost of mortgage insurance. Here's another note to parents about helping their children financially: "The financial support you are offering your adult children is toxic."

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Here's yet another take on parental help in home buying: Can your kids actually afford to own a house? Helping someone buy a house he or she cannot afford to carry while saving for retirement and other things is irresponsible.

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