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- Dec 5, 2007
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Hi,
Which of the following 2 deals (if any) makes more sense to do with parents who live abroad and are non-Canadians:
Deal#1: Father puts the down payment (say $50K) and acts as guarantor on the mortgage. only son is on title. son manages the property. ownership 50/50. Upon sale of property parent receives investment capital first, then balance is split 50/50.
Deal# 2: Father loans son the down payment needed (say $50K) and gets 10% interest paid monthly for 5 years. son owns property and is on both mortgage and title. Father simply acts like 2nd mortgage, no connection to property.
I recently learned from Mr. Peter Kinch that "non-residents can qualify quite easily with most lenders though at minimum they will need 25% down"
so this itself should not be the issue.
Obviously, the options mentioned above do not describe the entire agreement, just the general idea behind each.
Which is the more common way to do "business" with family/parents?
Thanks & Regards,
Neil
Which of the following 2 deals (if any) makes more sense to do with parents who live abroad and are non-Canadians:
Deal#1: Father puts the down payment (say $50K) and acts as guarantor on the mortgage. only son is on title. son manages the property. ownership 50/50. Upon sale of property parent receives investment capital first, then balance is split 50/50.
Deal# 2: Father loans son the down payment needed (say $50K) and gets 10% interest paid monthly for 5 years. son owns property and is on both mortgage and title. Father simply acts like 2nd mortgage, no connection to property.
I recently learned from Mr. Peter Kinch that "non-residents can qualify quite easily with most lenders though at minimum they will need 25% down"
so this itself should not be the issue.
Obviously, the options mentioned above do not describe the entire agreement, just the general idea behind each.
Which is the more common way to do "business" with family/parents?
Thanks & Regards,
Neil