GF wants to pay into mortgage from UK, will eventually be added on.

[afx27]

So my girlfriend and I live in London, UK, I have a condo and mortgage in Canada. Once the mortgage is up for renewal we will add her name to it. My question is, is she able to make payments toward the mortgage from the UK before she is added onto it? What kind of taxes would be involved in doing this?? She is originally from Lithuania but has indefinite leave to remain in the UK. Eventually the plan is to move to Canada.

 

[diamondphil]

@afx27 Ya she can just send u money ?

 

[afx27]

@diamondphil Would that not be subject to more tax?

 

[jesusismyticket]

@afx27 Why would that have any tax implications at all?
She is essentially paying you “rent”, but why would she do that if she’s not living with you right now??

 

[afx27]

@jesusismyticket We will eventually live at the property. It is being rented out right now and I am paying the mortgage on it. Her half will cover the entirety of the mortgage. Paying it off completely obviously means I no longer have to make payments but Wouldn’t a lump sum of money like that be seen as gifting and bring with it tax implications?

 

[jesusismyticket]

@afx27 There is no tax on gifts

 

[afx27]

@jesusismyticket Thank you did not realise this

 

[composer1756]

@afx27 Why? Why had her name to it? Why does she want to pay for the mortgage of your property? Why do you want to add her name to it?

 

[afx27]

@composer1756 Eventually we will be moving to Canada to live there. She has savings that will pay off the entirety of the mortgage. I have already paid off half.

 

[composer1756]

@afx27 And what happens if you break up? Not only are you getting into potential common law marriage issues, you’re including international law and you’re mixing property as an unmarried couple.

Whatever you end up doing you’ll need a lawyer to do the paperwork, so consult with a lawyer on your risks on proceeding with this, also with what might change when you move to Canada and you’re living together, or if she’s denied entry/visa to Canada.

Also keep in mind that there’s currently restrictions on foreign nationals purchasing residential properties in Canada. So it might not be possible to add her to the property. (I don’t know details)

Realistically, unless you’re having problems paying the mortgage right now you should keep finances separate and she should invest it.

 

[garfield156]

@afx27 You live together for a year and you're basically married btw

 

[afx27]

@garfield156 We have already been living together, just in the uk

 

[garfield156]

@afx27 I don't know how it works if you've been internationally. But just know that if you seperate she's entitled to half your matrimonial home. As well as your savings,pension etc.

 

[afx27]

@garfield156 Yes, I am aware. Hopefully it never comes to that