Approximately half of Canadians have the resources to bequeath wealth on to their loved ones
Canadians in Quebec and Ontario are among the most prepared to leave an inheritance for their next generations, according to a new Angus Reid survey commissioned by Canadian Western Bank.
The poll results suggest that the majority of older residents in these provinces (60% in Quebec and 52% in Ontario) are in an established financial position to leave inheritances.
Overall, 52% of Canadians have the resources to bequeath wealth on to their loved ones, with those aged 55 and above more likely (72%) to say that they will be leaving inheritances to the next generation.
At the same time, less than half (44%) of Canadians in the 35-54 age range said that they have made the necessary preparations to leave inheritances.
“Inheritance planning might be left too late in the lives of Canadians, particularly the younger generation,” CWB said in its report of the results. “This identifies the importance for Canadians to start their inheritance planning (in all its forms) – including proper financial management to reduce burdens on inheritors – earlier.”
New national census figures released by Statistics Canada last week contained some intriguing revelations about the country’s current demographics – not least where its housing and mortgage markets are concerned.https://t.co/Cxj9VIWror
— Canadian Mortgage Professional Magazine (@CMPmagazine) May 10, 2022
Family is playing an outsized role in many Canadians’ housing purchases
During the pandemic era, approximately 30% of first-time buyers and 9% of move-up buyers have benefited from financial assistance provided by family members, according to the Canadian Imperial Bank of Commerce.
“I would be very surprised if we’re not seeing a significant amount of gifting,” said Benjamin Tal of CIBC.
CIBC estimated in 2021 that, on average, first-time buyers received $82,000 in assistance for every purchase – and even reaching as high as $130,000 in Toronto and $180,000 in Vancouver.
“No less than two-thirds of first-time buyers that received a gift indicated that the gift was the primary source of their down payment,” Tal told BNN Bloomberg.
CIBC reported that the contributions of “the Bank of Mom and Dad” totalled more than $10 billion in 2021, representing around 10% of overall housing down payments during that year.
