Adult Children Are Tapping Into the Bank of Mom and Dad More Than Ever to Pay Their Mortgages!

In today’s housing market, securing the keys to a first home isn’t as easy as it once was. Soaring home prices and rising mortgage rates have left many young adults turning to an increasingly familiar source for help: the Bank of Mom and Dad.

Whether it's a gift, a loan, or co-signing on a mortgage, parents are stepping up to support their children’s dream of homeownership. But what’s driving this trend—and what should families consider before diving in?

🔑 Why It’s Happening

📈 Skyrocketing Home Prices
In many markets, home prices have reached all-time highs. This makes it incredibly difficult for first-time buyers to save for a down payment or qualify for a mortgage on their own.

💰 Parental Loan or Gift Assistance
Some parents are providing direct financial help—either through gifts or low-interest loans—to assist with down payments or even monthly mortgage payments.

📝 Co-signing Loans
Others are co-signing mortgage applications to help boost their children's chances of approval, leveraging their own creditworthiness.

💡 What’s the Impact?

❤️ Emotional & Financial Strain
While the gesture is full of love, it can come with a cost. Parents may be dipping into retirement savings or delaying financial goals to help out their children.

🏦 Generational Wealth Transfer
On the flip side, this support can be seen as a way to build long-term financial security for the next generation, giving children a head start on building equity and wealth.

💬 Let’s Talk About It

Are you—or someone you know—considering helping an adult child with a home purchase? It’s a deeply personal decision with both pros and cons. I’d love to help guide you through the considerations and help you make a plan that works for your family.

Reach out and let’s chat! Your real estate goals are important, and I’m here to support you every step of the way.