Financing a condominium: full repayment or not?

Oh man, this is really getting out of hand... My mother just told me that her partner (they are getting married on 14.12.) would give us a private loan of 200,000€ at half the bank's interest rate. o_Oo_Oo_O Can this work, I mean, will it be recognized by the bank? We didn't know whether he would basically transfer the 200,000€ to us and we would include it as equity, or if it would be done as 2 loans (private + bank). I could imagine that if he transfers the full amount to me as a third party, it might look like a gift and the tax office would charge me 30% gift tax?

No, for that you simply draw up a loan agreement. I've done that before, although not for such an amount. The conditions and also, for example, securities etc. are freely negotiable. I also wouldn't know what problem the bank should have, as long as your monthly burden still fits within their template. However, if he wants a land charge, you would have to clarify with which rank, and if he wants the first rank, it becomes more difficult with the bank again. Not impossible, but more difficult.

Oh man, now this is getting out of hand... My mother just told me that her partner (they are getting married on 14.12.) would give us a private loan of €200,000 at half the bank's interest rate. o_Oo_Oo_O Can that work, I mean will it be recognized by the bank? We didn't know whether he would basically transfer the €200,000 to us and we would contribute it as equity, or if it would be done as 2 loans (private + bank). I could imagine that if he transfers the full amount to me as a third party, it looks like a gift and the tax office takes 30% gift tax from me?

Is it worth the effort to bring an external person on board? The question would be whether he wants to be listed in the land register or not? If yes, I would do it through the bank.

Can this work, I mean will it be recognized by the bank?

It is equity. The bank does not care where it comes from.

I could imagine that if he transfers the full amount to me as a third party, it looks like a gift and the tax office charges me 30% gift tax?

Who tells the tax office?

Private loan over €200,000

Question about the structuring. Contract? Subordinate land charge? Repayment? Term?

Apart from the fact that it is really nice, you do save money, but not an enormous amount. Mid single-digit thousand euro amount.

I would only do it if the need is great. For me, the advantage is not big enough. And the lender also has to pay tax on the interest if done properly (which is not the case in 95% of cases, a contract is rather pro forma).

Who tells the tax office?

Well, I thought the bank reports to them that this much money has appeared in my account.

Question about the structure. Contract? Subordinated land charge? Repayment? Term?

Still needs to be clarified, I think without a land charge. I wouldn't do it with one. Regarding repayment, I thought we simply split the €1500 monthly rate, then the term would also be over 15 years.

Apart from the fact that it's really nice, you do save money, but not a huge amount. Mid single-digit thousand euro amount.

Well, I had assumed it would be more. If I pay 0.84% at the bank, over 15 years I come to about €20,000, and if I pay him only half, i.e. 0.41%, interest, then only half as much interest would have to be paid? Big misconception?!

If I pay 0.84% at the bank, over 15 years I end up with about €20,000, and if I only pay half of that to him, i.e. 0.41% interest, then only half as much interest has to be paid? Big misjudgment?!

Just a small one. First, 0.84 divided by 2 is already 0.42% ;) You are only getting €200k as a family loan. But you need €281k. So another €81k from the bank. It's clear you'll get that, but the interest rate will probably be a bit higher than before, since it's a small loan. I calculated it once, it will be just under €10k then. The €281k will cost you "only" €18k in interest over 15 years. All calculated with immediate disbursement to make it more comparable.