Prapti Verma didn’t have financial support from her family, unlike 31% of Canadians according to a 2024 CIBC study. Verma and her husband dipped into his RRSP and borrowed money from friends to buy her home.Galit Rodan/The Globe and Mail
When Prapti Verma moved to Canada from India in 2018, she was taken aback by the number of real estate advertisements she saw on almost every street corner. She noticed each one: the for-sale signs propped up on front lawns, the faces of grinning realtors plastered on benches, and the massive billboards on the highway.
It didn’t take long for the now 33-year-old to learn that homeownership isn’t just a milestone in Canada – it’s the dream. She and her husband, who were excited to build a life and raise a family in a country they loved, bought into that dream.
In 2021, they purchased their first townhouse in Ajax, Ont., for around $750,000, putting 10 per cent down. Two years later, they sold the townhouse and upgraded to a detached home in nearby Whitby, costing about $1-million.
But despite living the Canadian dream, Ms. Verma says she doesn’t feel ahead, financially or emotionally.
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Unlike many of their peers, the couple received no financial gifts from family. To afford their first townhouse, Ms. Verma and her husband, both working full-time jobs in fundraising and IT respectively, picked up additional work driving for Uber, stayed home most weekends, dipped into his work RRSP and borrowed $10,000 from friends.
Today, even with owning a home and working two full-time jobs between them, the pressure hasn’t let up. They are struggling to keep up with their high mortgage payments and paying back money into the RRSP.
“It doesn’t feel like in the short term we’ll be able to get over all of those things very soon,” Ms. Verma said. “Whereas if I had money from my parents, there’s no obligation over that.”
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“You’re not free from it,” she said, referring to the debt they have left to pay.
Across Canada, more young adults are relying on their families to get a leg up, especially when it comes to buying a home. But for those without that help, the path to financial security can feel steeper, slower, and often lonelier. As intergenerational wealth becomes more pronounced, the gap is widening between Canadians who can build for the future, and those still catching up.
A 2024 CIBC study found that 31 per cent of first-time homebuyers received gifts from family to help with down payments, up from 20 per cent in 2015. And the size of those gifts is growing. The average reached $115,000 last year, a 73-per-cent jump from 2019.
Although Ms. Verma and her husband were able to buy a home on their own, the purchase left them feeling financially strained.Galit Rodan/The Globe and Mail
The divide is only getting starker as young people face one of the toughest job markets in decades. Entry-level opportunities are drying up, and real estate prices remain high. For those without the financial cushion of family support, every step forward can feel hard-won and delayed.
Without a family safety net, Ms. Verma says she feels her financial burden has been heavier than that of her peers. Many of the couple’s friends, Ms. Verma says, received down payment gifts and were able to put 20 per cent or more down, lowering their monthly mortgage costs significantly. Some bought homes earlier. Others still take vacations.
Adam Jenkins, a certified financial planner in Kingston, sees first-hand how significant family help can be. Among his clients, gifts from parents often range from $100,000 to $200,000.
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“It makes a massive difference,” he said. “The size of those payments and the interest associated with it obviously really affects those kids and being able to essentially save for anything else – their future, their goals.”
He continued: “It’s really hard not to compare yourself. You see your friends buying houses and you feel like you’re being left behind.”
Mr. Jenkins urges young Canadians to focus on what they can afford after contributing to long-term savings vehicles such as RRSPs and TFSAs, rather than contorting their budgets around homeownership.
“Buying a house isn’t right for everyone. It shouldn’t be the one and only goal.”
But the wealth divide isn’t just about down payments. It shapes everything, from how early someone can start investing to whether they can take career risks, save for retirement or weather economic downturns without derailing their plans, Mr. Jenkins said.
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Another advantage that’s helping some young Canadians get ahead faster: the ability to live with their parents.
Whether they never left or have moved back in, living at home even temporarily can supercharge savings. Some contribute rent or groceries; others don’t. Either way, the cost savings can be thousands per month.
“The amount they can save is substantial,” said Robin Taub, a chartered professional accountant in Toronto, and author of The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life. “People talk about skipping the latte which is, you know, $5 to $8 a day. This is like thousands of dollars a month, so it’s a lot more high leverage in terms of the impact that it can have on your savings.”
Tyler Wright, 39, finished his undergrad with over $40,000 in debt and paid it off without help.Galit Rodan/The Globe and Mail
She’s seeing more young adults who could afford to move out but are staying put to build savings faster. Beyond money, there are emotional upsides, too, such as having a built-in support system and, in some cases, improved mental health.
For other Canadians, not having a leg-up financially isn’t just about money. It means missing out on time, connection and even belonging.
Sandy Stevens, 60, of Paris, Ont., was the first in her family to attend university. She commuted 90 minutes each way to York University from her parents’ house because she couldn’t afford residence. She also paid them rent.
“I was always working or riding the subway,” she said. “I didn’t have those bonding experiences. I don’t have any friends from that time that I’m still in touch with. I think I missed out on something there.” She ended up dropping out of York and returning to her education at University of Toronto in 2000.
Ms. Stevens worked a variety of jobs to pay for her education, including retail and summer camp roles, then ended up working for the Toronto Police Service as a 911 dispatcher.
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Her hustle paid off. She retired two years ago, without much help from her family.
Although they didn’t assist her financially, her parents did teach her the importance of saving. “It was always drilled into me to save for a rainy day, because you’re going to need money in your retirement,” Ms. Stevens said. “I wasn’t paying for a trip unless I had the money in the bank … and I was never racking up a credit card bill.”
Her story highlights how building wealth without inheritance or parental gifts is possible, but it does require some trade-offs.
Tyler Wright, 39, also had no financial assistance from family and graduated from McMaster University in 2012 with $40,000 in student debt and a starting salary of $45,000. His first priority out of school wasn’t saving for retirement, it was staying afloat.
“When you’re in debt, it sucks. Every paycheque is just going toward loans. You feel like you’re drowning,” Mr. Wright said.
Mr. Wright saves to build familial wealth so his children won’t have to amass debt like he did while a university student.Galit Rodan/The Globe and Mail
It took him more than five years to pay off his student loans. During that time, he cut back on social outings, lived in a small space and sometimes worked 70 hours a week. “I never wanted to be back there again in my life,” he said.
In the years that followed, he saved aggressively – up to $100,000 a year. He earned four promotions in five years working in tech and bought two properties; construction has started on a third. While Mr. Wright is now financially stable, he still often works more than 60 hours a week.
“I don’t want my kids to go through what I did,” he said. “I want to build family wealth.”
It’s a perspective he earned through hard-won experience. During his time at McMaster, he failed 10 classes before being diagnosed with a learning disability. By graduation, he had pulled his D average up to an A and was named valedictorian.
In his speech at graduation, he told his fellow graduates: “Sacrifice means doing whatever it takes to achieve your goals, no matter how many people say it can’t be done. When you believe this, you realize that success is not a matter of if, success is a matter of how.”