37% of young homeowners borrow from 'bank of mom and dad,' HSBC survey indicates

The vast majority of Canadian millennials in a global survey of over 9,000 adults plan to buy a home soon, but most are nowhere near financially ready to enter the market.

HSBCbank commissioned polling firmKantar TNS to survey 9,009 people in nine countries: Canada, Australia, China, France, Malaysia, Mexico, the UAE, the United Kingdomand the U.S.

The poll included 1,000 Canadians, but the results released Tuesday reflect the home-buying attitudes globally.

The survey includes some eye-popping numbers about thehousing market, particularly among individuals between ages 18 and 35 the range HSBC defined as millennial for the poll conductedlast October and November.

• Real estate 'chaos' sends millennials scrambling to buy while they can
• How the 'bank of mom and dad' is impacting house prices

A little over a third of Canadian millennialspolled already owned their own home,and among those who didn't, more than four out offive 82 per cent intended to buy one in the next five years.

However, nearly three-quarters, or 73 per cent, of millennialswho planned to buy soonsaid they had not yet started saving for a down payment. As well, more than a quarter of those in the 18-35 groupsaid they had not yet made any sort of budget yet.

• Want to buy a home? Don't think big think tiny, experts say

Even many ofthose who've managed to buy had bungled their planning, as 42 per cent of Canadian millennial homeowners said they spent more than they anticipated. That's less than the average across the nine countries, where 56 per cent of millennial ownerssaid they had spent more than they planned to on their first home.

But the numbers also suggest their parents are playing a key role in their homeownershipgoals.

More than a third of millennials surveyed, or 37 per cent,said they had made a withdrawal from the "bank of mom and dad" to cover housing costs.As well, 21 per cent of them hit up their parentsto help them pay for other unexpected costs after they had purchased homes.

• 'Crazy' bidding wars are moving to the suburbs too

In addition, 21 per cent said they had moved back in with their parents before buying a home to save for one.

The trend of parents helping outwas true across all countries.

Canada's ratio placedin the middle. In the U.A.E.,half of millennial buyers said they were given money from their parents for a home. In France,the ratio dropped to 26 per cent.

"The reality is, it's a challenge," said Larry Tomei, HSBC Canada's head of retail banking, "so I can't stress enough the importance of having a good plan that includes getting the right financial services advice and support before and after you buy."

Going into homeownership with a sound financial plan has become even more integral as the price of the average home in Canada continues to rise.

The latest Canadian Real Estate Association numbers show the typical home was worth $470,297 in January, a 17 per cent increase from a year earlier.

• ANALYSIS: Home ownership is still the measure of success for millenials

While the HSBC survey has some concerning numbers, not all the conclusions were bleak. Many of the survey subjects said they hadrealistic expectations for how they planned to pay for their homes nearly three in five (59 per cent) millennials intending to buy would consider spending less on leisure activities and going out.

Thirty-seven per cent said theywould be prepared to buy a smaller-than-ideal place, 32 per centwould consider renting out one of their rooms, and 13 per centwould consider buying real estate with a friend, as opposed to a family member or romantic partner.

• High housing prices prompt many young buyers to buy with friends