70% of young people are relying on grandparents to buy their first home

Your grandchildren are entering a brave new world of housing market uncertainty. Gone are the days of buying a family home on a single income, a dream that many young people have given up on. 

Canada is in a significant housing crisis. The reality is that most young people can’t keep up as costs continue to climb across Canada. The average price of a home in Ontario hit $852,036 in June 2025, while the median income for 25- to 54-year-old Ontarians was just $56,500 in 2023, meaning prospective homebuyers have a long way to go. 

According to a survey by Mortgage Professionals Canada, 33 per cent of non-homeowners believe they will never be able to afford a home in their lifetime. This possibility would have significant long-term impacts on their financial stability—including retirement down the line.

More and more, young people are forced to seek options other than home ownership. Over one-third of Canadians aged 20 to 34 live with their parents, while others are renting long-term and living with multiple roommates just to stay afloat. 

For those who are able to buy a home, 70 per cent couldn’t have purchased property without relying on family support, like gifts or loans from parents and grandparents. In fact, one in three grandparents are providing financial support to their adult children and grandchildren.

This is not without consequences for grandparents. Unplanned costs like down payment assistance can put significant strain on retirees living on a fixed income. Many grandparents—34 per cent—don’t even keep track of how much they’re spending to support their grandchildren, which can put retirement savings at risk. 

That’s why planning ahead and anticipating these costs is so crucial. Setting aside a little at a time will help you budget and fully understand the impact that this will have on your finances in the long term.

When your grandchild is ready to buy a home, odds are they’ll need some help. If you want a smart method to set them up for success, CAA Protect’s Bright Start can help.   

Bright Start is a life insurance plan that will help secure your grandchild’s future. As the child grows, you’ll be creating a safety net that will build cash value over time, allowing them to use this money for their down payment, mortgage or other milestones when the time comes. 

The plan has flexible payoff periods to fit your budget, meaning you can choose between a payment period of eight, 10 or 20 years. Once that time is up and your grandchild reaches adulthood, you can then gift them the policy by transferring the ownership to them, allowing them to take the next big step towards their dreams. 

Plan for a bright future 

Learn more about CAA Protect’s Bright Start and how you can help set up the next generation for success. Visit CAA Protect online or call 1-800-709-5809 to get started today.

Have a health and dental insurance question? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at: 1-800-709-5809 or email us at info@caaprotect.ca.