Monthly Archive: November 2019

Children help purchase home loan

Unsuspectingly, the parents of Christophe and Philip take out a home loan to help their children with the purchase of an apartment.

Only when Christophe wants to take over the mortgage loan from the parents with a new home loan does it become clear that his request for refinancing of the mortgage loan is not obvious to his bank.

Parents take out a mortgage loan to help children

Parents take out a mortgage loan to help children

The parents of Christophe and Philip thought about ten years ago that they were going to help their sons with the purchase of an apartment. Christophe and Philip are still studying and have no professional income.

The two brothers see an apartment. Conveniently located. Affordably priced. They consult with their parents. They want to help their children with the purchase of the apartment. Together they go to their house banker.

Housing credit for parents – children become the owner of the apartment

Housing credit for parents - children become the owner of the apartment

The house banker faces a difficult job. Two students, without income, want to buy an apartment. The parents want to help.

The home loan can be allowed. But neither Christophe nor Philip have the repayment capacity. The bank grants a mortgage loan to the parents where the two brothers become the owners of the apartment.

This creates the following strange situation. The parents are the borrower but not the owner. The children are owners but do not have a mortgage loan.

Christophe only becomes the owner of the apartment

A few years later Christophe met his wife Isabelle. The young couple decides to live together in the apartment. Christophe and Isabelle correctly repay the parents’ mortgage loan. They still want to stand on their own two feet. For this they only want to become the owner and have the mortgage loan in their name.

After family consultation, Philip agrees to waive his ownership rights in the apartment so that Christophe and Isabelle only become owners. Now they still have to go to the house banker for the refinancing of the mortgage loan.

Good Finance does not respond to a request for refinancing home loan

Good Finance does not respond to a request for refinancing home loan

The young couple are now working and want to take charge. They want the home loan to their name. Due to the continuing fall in interest rates, the couple could also benefit from a good interest rate for their mortgage loan. Full of hope they make an appointment with the house banker.

The house banker does not respond to the request for refinancing. The home loan is not in their name. The bank refuses the refinancing. The young couple do not know what happens to them. At the time it was this banker who had advised them on this construction and now he no longer wants to help.

Other traditional bankers also find the construction too strange and refuse to take over the current mortgage loan.

Yet new future through new mortgage loan

Yet new future through new mortgage loan

They are desperate. Isabelle and Christophe still get what they are entitled to. A new future with its own mortgage loan. Their credit broker knows how to advise. The request for a new home loan is being legally examined. In this case, a new mortgage loan can replace the current home loan. It is about preserving real property rights. Christophe and Isabelle want to keep their apartment. Even if they repay the mortgage loan correctly. Refinancing is also a good solution for parents. They no longer have a debt.

If you have children and you want to help them with the purchase of their home, it is best to make an appointment with an independent credit broker in mortgage credit. You explain the situation after which the credit broker can start looking for an appropriate home loan.