Bloc calls for tax-free RRSP withdrawals to help children enter housing market

Parents should be able to make tax-free withdrawals from their Registered Retirement Savings Plans (RRSPs) to help their children buy their first home, says Bloc Québécois leader Yves-François Blanchet.

Blacklock's Reporter says the proposal comes amid rising concern that homeownership is slipping further out of reach for younger Canadians without family support.

“It is a measure with no cost to the state,” Blanchet said, arguing the plan would allow children to use their parents' savings to purchase their first property and ease the financial burden of entering the market.

Blanchet described homeownership as “a social contract with younger generations” and added that the Bloc also wants to eliminate GST on home-related costs such as property inspections, notary fees, and moving services.

“These measures will make it easier to acquire a reasonably priced first home,” the party stated.

While no overall price tag for the proposals was provided, federal data shows family support plays a pivotal role in helping first-time buyers.

A March 26 Statistics Canada report found Canadians born in the 1990s whose parents owned homes were twice as likely to own property themselves by 2021. About one-third of homeowners under 35 received parental help, with the average benefit totalling $85,000.

“As housing affordability deteriorated, the barriers to homeownership have become increasingly prohibitive particularly for those without familial support,” wrote analysts.

The Bank of Canada echoed these findings in 2024 research, reporting a rise in parental co-signing on mortgages — from 4% in 2004 to 13% in 2022. These co-signed loans helped younger buyers enter the market earlier, often with lower credit scores.

The bank estimated 74% of adult children who had parental co-signers wouldn’t have otherwise qualified for a mortgage under current lending rules. With home prices having more than quadrupled since 2000 and debt levels now exceeding 180% of disposable income, the dream of homeownership is increasingly out of reach for younger Canadians.

In Vancouver, for instance, a borrower must earn $212,800 annually to afford a typical home, while the median household income sits at just $83,600.