Buy out brother after gift | Home loan
Anne and Grégory, brother and sister, become owners of the parental home after donation. Anne only wants to become the owner of the parental home and is going to buy out her brother.
She opts for a home loan for financing the buyout sum. Yet she does not get this through her house banker. How come? Below you can read why.
Anne and Grégory receive parental housing through a gift
The mother of Anne and Grégory decides to donate the parental home to her two children, Anne and Grégory.
Grégory is already a homeowner and is not really interested in living in the parental home. For Anne, on the other hand, this is a unique opportunity to become the owner of a home.
Together with her husband, she now rents a home for $ 600 a month. To become the sole owner, she will have to buy out her brother.
Anne is going to buy out her brother through new home loan
Anne and her husband Paul discuss what they are going to do. They decide to buy out Grégory, the brother. In this way they can also become the owner of the (parental) home. After consultation between brother and sister, the buy-out sum is set at $ 50,000.
Anne does not have this money immediately and consults her bank for financing.
Why doesn’t Anne get a home loan from her bank?
Anne makes an appointment with her house banker, but he is not willing to give the couple a home loan.
Why doesn’t Anne and her husband get a home loan from their bank:
- Anne and Paul are too old (50 years and 59 years)
- Anne has a replacement income
- Paul is currently unable to work
- Anne and Paul still have an installment loan where they pay $ 450 per month
Why do Anne and Paul get a home loan from Good Finance?
Every credit file is different. There is a story behind all the figures. The credit broker in mortgage credit therefore listens carefully to the story of every customer to know the correct situation.
Thanks to the credit broker, Anne and Paul do get a home loan:
- Paul will soon resume his work, which means that he will again receive his full salary
- Anne and Paul refinance the installment loan and finance the buy-out sum via one new home loan
- Anne and Paul have the necessary repayment capacity to repay the home loan
- Anne and Paul take out a balance insurance policy which protects them in the event of the death of one of the other partners
- The monthly charge falls from $ 1,045 (installment loan + rental fee) to $ 700
- Anne and Paul become owners and save $ 300 per month
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