It will come in the form of equity.
A house bought decades ago.
A mortgage nearly paid off.
A property that quietly appreciated while life moved on.
Across Canada, parents aren’t handing down cash — they’re handing down value locked in real estate. And for adult children, that creates both opportunity and confusion.
Because equity isn’t money.
And without a plan, it’s hard to use.
The Shift No One Prepared Families For
Previous generations passed on savings, pensions, and cash accounts.
This generation is different.
Today’s reality:
Parents are house-rich
Retirement income is tighter
Living longer costs more
Wealth is concentrated in the family home
The result? Families are asset-rich but liquidity-poor — even across generations.
That’s where the idea of a “living inheritance” comes in.
What a Living Inheritance Really Means
A living inheritance isn’t about taking from parents.
It’s about using existing equity strategically while everyone is alive.
Instead of waiting for:
Probate delays
Forced sales
Estate pressure
Family conflict
Families are asking better questions now:
Can equity help a child buy their first home?
Can it fund education or a business?
Can it reduce debt or stabilize finances?
Can parents stay in their home while helping the next generation?
Often, the answer is yes — if it’s structured properly.
Why Banks Make This Hard
Traditional lenders struggle with intergenerational planning.
They focus on:
Income tests
Age limits
Stress tests
Rigid qualification rules
They don’t adapt well to:
Retired parents with strong equity
Adult children with uneven income
Short-term needs
Family-specific goals
That rigidity leaves many families stuck — despite owning valuable property.
Equity Is a Tool, Not a Windfall
The biggest mistake families make is treating equity like cash.
Equity should be used:
Temporarily
Purposefully
With a clear exit plan
Common, responsible uses include:
Helping a child purchase or bridge a home
Paying off high-interest debt
Funding education or business growth
Avoiding forced property sales
Supporting aging-in-place
The goal isn’t to drain equity — it’s to unlock it intelligently.
How Private, Equity-Based Solutions Fit In
Private mortgage solutions are often used in living-inheritance planning because they focus on:
Property value
Loan-to-value
Short- to mid-term timelines
Clear repayment or refinance strategies
Not just income on paper.
This makes them especially effective for:
Retired parents
Self-employed families
Temporary funding needs
Time-sensitive opportunities
Used correctly, they provide flexibility — not risk.
A New Way Families Think About Wealth
Equity doesn’t have to sit idle until someone passes away.
When handled transparently and conservatively, it can:
Reduce stress
Prevent future emergencies
Strengthen family outcomes
Preserve long-term wealth
The key is planning — not panic.
The Bottom Line
Your parents didn’t give you cash.
They gave you options.
Understanding how to use home equity responsibly can turn a silent asset into a meaningful advantage — without selling the family home or creating future problems.
About Lendworth
Lendworth works with Ontario families on living inheritance and equity-based mortgage solutions, helping parents and adult children use real estate value thoughtfully, transparently, and strategically.
Your equity deserves more™.