ReverseMortgageHamilton.ca shows parents how to help your child buy a home in Hamilton by giving a down payment from your own home’s value, while you keep living in it. The page starts with what a first home costs in Hamilton today. Then it explains how a reverse mortgage can pay for the gift, and what that gift costs over time.
What a first home costs in Hamilton
The median price for a townhouse, condo or semi-detached home in Hamilton was $565,000 in September 2026. The median detached house was $692,500 (Cornerstone, Hamilton Monthly Indicators, September 2026). Both were lower than a year earlier.
The minimum down payment
Canada’s minimum down payment is 5% of the first $500,000 of the price and 10% of the part above $500,000, for homes up to $1.5 million (Financial Consumer Agency of Canada).
| Home price | 5% of the first $500,000 | 10% of the rest | Minimum down payment |
|---|---|---|---|
| $565,000 (median townhouse, condo or semi) | $25,000 | $6,500 | $31,500 |
| $692,500 (median detached) | $25,000 | $19,250 | $44,250 |
The minimum is only the start. A larger down payment means a smaller mortgage for your child and lower monthly payments.
Land transfer tax: Ontario’s only
Hamilton has no city land transfer tax. Toronto is the only city in Ontario that charges its own land transfer tax (Government of Ontario, Land transfer tax).
Ontario’s tax on a $565,000 home is $7,775 (Government of Ontario, Calculating land transfer tax). A first-time buyer can get a refund of up to $4,000 (Government of Ontario, first-time homebuyer refunds). That leaves about $3,775 to pay at closing.
How a reverse mortgage can pay for the gift
A reverse mortgage allows owners 55 and older to borrow against their house, and it carries no required monthly mortgage payments. Property taxes, home insurance and upkeep stay yours to pay. You keep the title, and you keep living there.
The amount is what’s left after what you owe
The ceiling is not extra money on top of your current mortgage. Whatever you still owe on your house is cleared first from that same money.
For example, take an illustrative homeowner aged 75 in Stoney Creek. The board’s 12-month average sale price there was $766,119 to September 2026 (Cornerstone Association of REALTORS). At 75, the ceiling is about 58% of the value, or up to about $442,000. With $40,000 still owing on the home, up to about $402,000 would be left. A $50,000 gift uses only part of it, and the rest of the approval can stay untouched.
You don’t have to take the full amount. Interest is charged only on money you actually take. The Hamilton reverse mortgage calculator runs the numbers for your own home.
A gift letter for your child’s lender
Your child’s lender will usually ask for a signed gift letter. It says the money is a gift and does not have to be paid back. The lender may also want to see the money arrive in your child’s bank account before closing, so plan the timing early.
Interest grows on the gift amount
The balance grows because interest is added to it, compounded twice a year. Advertised 5-year fixed rates ran 6.23% to 6.94% when checked on September 17, 2026.
| Illustrative $50,000 gift, no payments made | At 6.23% | At 6.94% |
|---|---|---|
| Balance after 5 years | about $68,000 | about $70,000 |
| Balance after 10 years | about $92,000 | about $99,000 |
These figures are illustrative and assume the rate stays the same. Rising house values often make up for part or all of that interest. Across Canada, borrowers keep roughly half of their home’s value on average. When the mortgage becomes due, you can never owe more than your home is worth, so long as the property tax is paid, the insurance stays current and the house is looked after.
Fairness between your children
A gift to one child can raise questions for the others. Some parents give each child the same amount over time. Others reflect the gift in the will. Talk with your own lawyer about the choices, because legal advice has to come from a lawyer.
Before any reverse mortgage closes, you meet your own lawyer for independent legal advice. It costs about $800 to $1,200 in Ontario, and lenders generally want that meeting held in person at the lawyer’s office.
The protections, and who arranges it
All four lenders are government regulated: HomeEquity Bank (CHIP), Equitable Bank, Home Trust and Bloom. Each requires independent legal advice, and with each one you can never owe more than your home is worth when the mortgage comes due, as long as taxes, insurance and upkeep are kept up. The guide to what a reverse mortgage costs in Hamilton lists every one-time cost.
Richard Hopkins, Mortgage Broker, compares every reverse mortgage lender in Canada, and can arrange your child’s own mortgage too. The work happens by email, phone and video call, with family welcome in copy. The service is free to you: the lender you choose pays the brokerage after the mortgage funds.
Some parents weigh other routes first. The guide to the cost of downsizing in Hamilton covers selling and moving. If income is tight, the Hamilton property tax deferral for seniors can ease the yearly tax bill. If your home needs work too, read about renovations so you can stay in your home.
What's included when you ask for help
- Works out how much your home could provide, after anything you owe
- Compares every reverse mortgage lender in Canada for your home
- Helps you choose a gift amount, not the most you qualify for
- Shows in writing how the balance could grow over the years
- Times the money so it's ready before your child's closing date
- Arranges your child's own mortgage too, if they want help with it
- Copies your son or daughter on every email, with your OK
- Lists every cost of the reverse mortgage in writing before you sign
Related Hamilton guides
- What does a reverse mortgage cost in Hamilton?
- What does downsizing in Hamilton really cost?
- How does Hamilton's property tax deferral for seniors work?
Sources
Figures checked October 15, 2026.
- Cornerstone, Hamilton Monthly Indicators, September 2026 (ITSO)
- Cornerstone Association of REALTORS, Hamilton housing statistics
- Financial Consumer Agency of Canada, Down payment
- Government of Ontario, Calculating land transfer tax
- Government of Ontario, Land transfer tax refunds for first-time homebuyers
- Government of Ontario, Land transfer tax