Buying a Duplex + Helping Your Kids Buy Their First Home

Could buying a duplex or triplex actually make more financial sense than purchasing a traditional single-family home? This week on Under One Roof MTL, Robyn Flynn and LJ Aguinaga explore how first-time buyers can use rental income to help offset their mortgage payments, build equity, and potentially get into the real estate market sooner. But becoming a homeowner and a landlord at the same time comes with responsibilities that buyers need to understand. Plus, Fred Pichette and Martin Spalding tackle a question facing many Canadian families: how can parents help their adult children purchase their first home without jeopardizing their own financial future? From gifting down payments to co-signing mortgages and tapping into home equity, we explore the risks, responsibilities, and important conversations families should have before making a commitment. We're also looking at the latest developments in Canada's mortgage market, including rising fixed rates, renewed inflation concerns, and the possibility of another Bank of Canada interest rate increase. IN THIS EPISODE What's Happening in the Market: Fixed vs. Variable Mortgages as Interest Rates Shift After a period of declining interest rates, Canadian borrowers are facing renewed uncertainty as bond yields climb and economists reconsider where the Bank of Canada's policy rate might be headed. • Why Canada's September inflation rate of 3.1% has renewed concerns about interest rates • Why some economists are forecasting a potential Bank of Canada rate increase on October 28 • How rising government bond yields influence fixed mortgage rates • Why fixed and variable mortgage rates respond to different economic factors • The advantages and disadvantages of choosing a fixed-rate mortgage versus a variable-rate mortgage • How mortgage penalties can differ depending on the type of loan • Why shorter fixed terms of two or three years might be worth considering • How to make a mortgage decision based on your personal finances rather than trying to predict the market We also discuss the Canadian Real Estate Association's revised housing sales forecast and CMHC's concerns that slowing construction today could contribute to future housing shortages. Real Estate: Buying a Duplex or Triplex as Your First Home LJ explores whether purchasing an owner-occupied multiplex could be a smart alternative to buying a single-family home. • How living in one unit and renting out the others can help offset your mortgage expenses • Whether rental income can help first-time buyers qualify for a larger mortgage • How down payment requirements and financing differ for owner-occupied duplexes and triplexes • The additional expenses buyers need to consider, including property taxes, insurance, maintenance, and repairs • What happens when you purchase a multiplex with existing tenants • Understanding landlord responsibilities and tenant rights under Quebec's rental laws • What buyers need to know if they want to move into a unit that's currently occupied • Common red flags to watch for when evaluating an income property • How an owner-occupied duplex or triplex can become a stepping stone toward a single-family home or a larger real estate portfolio Buying a multiplex can offer financial advantages, but it's important to understand that you're not just purchasing a home. You're also taking on the responsibilities of a rental property owner. Mortgages: Helping Your Kids Buy Their First Home Without Risking Your Retirement Martin shares the story of Robert and Diane, a couple approaching retirement who wanted to help their daughter and son-in-law purchase their dream home. They contributed $80,000 toward the down payment and agreed to co-sign the mortgage. But when their son-in-law lost his job, the couple separated, and mortgage payments stopped, Robert and Diane suddenly found themselves responsible for a $600,000 mortgage on a property they didn't own outright or live in. Fourteen months later, they'd paid nearly $48,000 in mortgage payments on top of their original $80,000 contribution, putting their retirement plans in jeopardy. We explore: • The different ways parents can help their adult children purchase a home • Whether it's better to gift money toward a down payment or structure it as a loan • What parents are legally and financially responsible...