The number of parents co-signing mortgage applications for their adult children has significantly increased, according to Bank of Canada data. The share of first-time homebuyer mortgages co-signed by parents rose from approximately four percent in 2004 to around eleven percent in 2025.
This trend is particularly pronounced in Canada's most expensive housing markets like Toronto and Vancouver. Co-signing is more common among younger first-time buyers with lower credit scores and incomes.
In 74 percent of co-signed cases, adult children would not have qualified for a mortgage on their own. Co-signing also substantially boosted purchasing power, enabling buyers to afford homes worth an average of $787,000 in 2022, compared to $458,000 without parental assistance.
The Bank of Canada warns that this growing reliance on co-signing can leave both parents and children financially vulnerable to deteriorating financial situations and may represent an emerging vulnerability for the financial system.