Girlfriends Parents Giving Us House Loan, I Have Some Q’s

[jazzmaniac42]

@vivian100 I’m not intentionally “over-complicating” anything. I literally have no idea what I’m entering into, and doing research into just that.

Why wouldn’t I not have equity in the home? I have no idea yet.

 

[kaytlinsdad]

@jazzmaniac42 This sounds stupid af sorry . Qualify yourselves. Interests rates are low. If you can’t qualify don’t buy

 

[resjudicata]

@jazzmaniac42 Just politely decline their offer and get a regular mortgage through a bank, interest rates are under 2%.

The only way this is “a good opportunity” for you considering the risk is if it was less interest than already very low bank rates...would you rather deal with a professional bank or spiteful ex girlfriend parents in the event of a break up?

Why would the parents “invest” $500k for the same rate they could get in a GIC with no risk at all.

Declining saves you a potentially head ache and saves the gf’s parents from making a terrible investment.

 

[jazzmaniac42]

@resjudicata Because they want to help out their daughter and her boyfriend? They’re not making an investment here lmfao.

 

[zango11]

@jazzmaniac42 How long have you been together? Are you common law? Having kids? Ever getting married?

 

[jazzmaniac42]

@zango11 3 years, not sure(?) but likely not, likely not, and likely.

 

[ghy1221]

@resjudicata The post implies the loan is interest free.

 

[kajsa]

@resjudicata Some people "accidentally forget" to pay the income tax on the interest that they earn from family loans. There's no documentation reported to the CRA, so they have a devil of a time tracking this sort of thing. In contrast, if you plunk $500k into GICs, you'll definitely receive a T5 slip every winter and you cannot accidentally forget to report that income.

 

[sharpscrew1971]

@jazzmaniac42 I would seek legal advice about this, from a family law lawyer.

 

[jazzmaniac42]

@sharpscrew1971 Cool, I’ll look into this. There’s so many types of lawyers, so I just need to figure out what the right one to approach is.

 

[sharpscrew1971]

@jazzmaniac42 A huge amount of family law is property law, and our legal system has a lot of nuances when it comes to proprietary/monetary dealings between family members (including between unmarried partners) that lawyers without the family expertise might miss out on. Regardless, good luck with the situation, I’m sure you’ll find the help you need.

 

[loviedivine]

@jazzmaniac42 a family law lawyer is the correct type

 

[christian_bibin]

@jazzmaniac42 You should talk to your girlfriend about what she thinks about how you guys protect yourselves.

I think if there's any feelings that you and her have different feelings about what would happen if you split up then you can save on some legal fees.