Buying a house from Dad for below market price. No savings. Will we get a mortgage?

[Marocain]

I have been renting a house from my father for the past four years in D15. He now wants to sell the house to us for 130k Value of house 190k. Joint income 70k plus bonus 8k with two dependants. I am permanent in my job and my husband has only started working in his role a few months ago.We have very little savings .So my question is , have we any hope of obtaining a mortage and would the banks consider the 60k as a form of savings.Our child care is 500 per month and rent 700.

 

[44brendan]

Should be no issues with CAT (gift tax) as the amount is well under the threshold. The gift element of the transfer will not be considered as savings by a bank. LTV will be calculated on the value of the property and an independent value will normally be required for mortgage purposes. Amount of mortgage approved will be based on a standard net income assessment. This can be done by yourselves using an online calculator or call in to your bank and they will advise you.

 

[Brendan Burgess]

There should be no issue with CAT - Capital Acquisitions Tax.

There may well be a Capital Gains Tax liability if your father bought the house for less than its market value of €190k