Can Dad pay my mortgage
- Thread starter oaky9
- Start date
Why are you buying a house if you can't afford to pay a mortgage?
Your father sounds astonishingly generous. Is he going to be on the deeds or mortgage? How will you get a mortgage in your name for him to pay if you can't make the payments?
So, yes he can pay your mortgage but it may have an impact on your stamp duty status.
mf
Your father sounds astonishingly generous. Is he going to be on the deeds or mortgage? How will you get a mortgage in your name for him to pay if you can't make the payments?
So, yes he can pay your mortgage but it may have an impact on your stamp duty status.
mf
K
KalEl
Guest
There'll be tax implications also...if your name is on the deeds essentially he's giving you cash gifts. A parent can give their child €497K tax free, which can be before or after their death. (or a bit of both)
G
Guest118
Guest
Good oul Daddy eh?
Yep, fair play to him - there are enough begrudging losers out there as it is !
Does not have to be paying your mortagage directly, maybe pay a car loan or contribute a similar amount to living expenses and you pay your own mortgage. As posted if you want to go striclty by the book you can receive [payments monthly to tune of 497k, nice contribution to a mortgage.
just dont put his name on deeds, just gurantor for the loan if the bank are hard to ge loan out of.
there are millions of "grown ups"
out there who still get weekly hand out from parents.I have mates at 26 still on the take!!
What has any of this to do with the OP's question?
The green eyed monster is alive and well.
That's what the OP asked to be clarified!
monkeyboy has it right; if he pays money into your account every month you can use this to pay your mortgage. As long as you didn't use his payments when calculating your income for mortgage approval you should be fine.
If he can do this for you best of luck to you! If I could pay off my sons/daughters mortgage to give them a leg up in the world of course I would! As long as it soesnt spiral in to a "Daddy I want..." scenario and they know the value of earning a shilling then green eyed monsters shouldn't appear!
G
Guest118
Guest
What you mean by begrudging losers?
Dont get me wrong, its a great thing that families help and I'm delighted for okay9 but I have seen people take so much stuff for granted in life because "Daddy" pays for everything they never have to worry about things and just want want want and get get get.
People get fustrated because they try so hard and see people that can just ask Daddy and get. Thats why they begrude I'd say.
Dont get me wrong, its a great thing that families help and I'm delighted for okay9 but I have seen people take so much stuff for granted in life because "Daddy" pays for everything they never have to worry about things and just want want want and get get get.
People get fustrated because they try so hard and see people that can just ask Daddy and get. Thats why they begrude I'd say.
K
KalEl
Guest
I'm sure the poster regrets using that turn of phrase now.
This topic is very relevant nowadays as this generation is probably the first who possibly won't do as well as their parents did. There isn't much point in fathers/mothers sitting on vast wealth while their kids struggle to afford their own home and the reality is a lot of families are transferring wealth before death. I'm against spoiling people with cars/holidays etc but a parent giving their child a digout to whateve degree is admirable.
Anyone lucky enough to get such a digout should be grateful their family can do it.
K
KalEl
Guest
From the information posted it seems your Dad can't pay the mortgage directly (i.e. from his own current account)
The best solution in my opinion is for him to guarantee the loan and transfer an amount equal to your mortgage payment to you every month, recording this as part of the €497,000 tax free a parent can gift to a child.
If it was me, I'd go for professional advice.
The best solution in my opinion is for him to guarantee the loan and transfer an amount equal to your mortgage payment to you every month, recording this as part of the €497,000 tax free a parent can gift to a child.
If it was me, I'd go for professional advice.
From Revenue
What is the position where the purchase monies are not provided entirely by the first time buyer?
To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer. …
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
Notwithstanding this treatment, to take account of particular situations, Revenue is prepared to accept that a child, who is a first time buyer, will not be precluded from claiming first time buyer relief where a parent acts as a co-mortgagor in the following circumstances:
• The transfer of the house is taken in the name of the child.
• It is the intention of both the child and the parent that the parent is not to take a beneficial interest in the house.
• The parent has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
• It is not intended that the parent will be contributing to the repayment of the mortgage in the normal course.
Where the four conditions set out above are satisfied, Revenue will treat the parent as effectively acting in the role of guarantor for the loan.
mf
What is the position where the purchase monies are not provided entirely by the first time buyer?
To qualify for the relief the entirety of the purchase monies, including any borrowings, must be provided by the first time buyer. Any person, who provides part of the purchase monies or who is a party to any borrowings relating to such purchase, is also regarded as a buyer of the house and the relief will not be available unless that other person is also a first time buyer. …
The basis for this treatment is that, in such circumstances, the house is held for the person providing the monies used in the purchase of the house by way of a resulting trust presumed in favour of that person. This treatment applies whether or not all the parties providing the purchase monies, or all the parties to any borrowings, are actually named in the deed of transfer.
Notwithstanding this treatment, to take account of particular situations, Revenue is prepared to accept that a child, who is a first time buyer, will not be precluded from claiming first time buyer relief where a parent acts as a co-mortgagor in the following circumstances:
• The transfer of the house is taken in the name of the child.
• It is the intention of both the child and the parent that the parent is not to take a beneficial interest in the house.
• The parent has been joined into the mortgage solely at the request of the lending institution for the purpose of providing additional security for the monies being advanced for the purchase.
• It is not intended that the parent will be contributing to the repayment of the mortgage in the normal course.
Where the four conditions set out above are satisfied, Revenue will treat the parent as effectively acting in the role of guarantor for the loan.
mf