You Could Use Some of Your Equity To Give Your Children the Gift of Home

If you’re a homeowner who bought years ago, chances are you’re sitting on significant equity. That equity isn’t just a number on paper—it’s an opportunity. And for many parents, it’s an opportunity to help the next generation put down roots in a world where homeownership feels more out of reach than ever.

With housing prices higher than in previous decades and interest rates still fluctuating, many younger buyers are struggling to save enough for a down payment. That’s where your equity comes in.

A Powerful Legacy: Helping Your Child Buy a Home

Using some of your equity to help your child purchase a home is more than just a financial decision—it’s a way to give them stability, a sense of place, and a foundation to build their own future. Whether it’s a gift toward a down payment, a family loan with favorable terms, or even co-ownership, there are multiple ways to structure this kind of support.

Why Now?

• Your Equity Has Grown: With home values having climbed over the last decade, many homeowners have built significant wealth without even realizing it.

• Home Prices Aren’t Dropping Anytime Soon: Even if the market cools, affordability will likely remain a challenge for young buyers.

• Interest Rates May Not Go Back to 2-3%: Helping your child buy now could mean they lock in a rate before the next market shift.
  
  

Options for Tapping Into Your Equity

1. Cash-Out Refinance
   Replace your current mortgage with a new one at a higher amount and take the difference in cash.

2. Home Equity Line of Credit (HELOC)
   Borrow against your home’s equity as needed—ideal if you want flexibility.

3. Home Equity Loan
   Receive a lump sum with fixed interest and a set repayment plan.

4. Downsize or Sell
   If you’re already thinking of moving, this could be the moment to unlock your home’s value and reinvest part of it in your family’s future.
   
   

Things to Consider

• Talk to a financial advisor before making any major decisions.

• Set clear expectations if you’re offering a loan versus a gift.

• Work with a real estate professional to help your child navigate the buying process—and ensure it’s a smart, sound investment.
  
  

It’s Not Just About the Money

Helping your child buy a home is also helping them build stability, confidence, and wealth over time. It’s one of the most meaningful ways you can pass down the benefits you’ve earned—and watch that gift grow.

If you’re curious about how much equity you have or want to explore ways to use it wisely, let’s talk. I’d love to help you explore the possibilities and be a guide for both you and your child through the journey.