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Disclaimer: we know this is financially stupid, but this is my wife's health we are talking about. Yes we know we didn't make the most financially smart decisions

Situation: We bought a house in December 2014. It's an apartment with no elevator and my wife cannot climb the stairs anymore due to a handicap which came out of nowhere.

Now we have to move and get a new home. Unfortunately the renting prices are rising big time in our city and renting is not a (long term) option. So we would like to buy a new house.

We don't have enough savings to both sell (we will most likely get a debt) and to buy a new house (the banking fees etc.).

We are able to save about €1500 a month and would be able to save enough money in under 6 months, to start the process of buying and selling. Problem is my wife cannot do anything at the moment due to her illness.

Parents can gift money (up to €50.000) to their children (under age of 40) in the Netherlands without paying taxes. Problem is, my parents nor my parents in law have that kind of money at hand.

Would it be possible for our/her parents to lend money from a bank and 'gift' that money to us. If so, what are our best options? We will pay that money back.

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    Rather than give you the money as a gift, could your/her parents become part-owners of the house you want to buy, and so possibly increase the size of the mortgage? – Steve Melnikoff Aug 13 '15 at 14:08
  • @SteveMelnikoff The size of the mortgage isn't the issue. We can finance extra expenses (mortgageadvice) up to 3% above the actual buy price. That's money that should come out of our own pocket. – Kevin Aug 13 '15 at 14:11
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    If you are approved for a mortgage on the basis of your down payment, you are committing fraud if you pretend that a loan from family is a gift. Do not commit lending fraud. – Grade 'Eh' Bacon May 29 at 21:10
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Have you tried registering for social housing? Rent prices through social housing are typically cheaper than on the free market. You might be able to jump to the front of the waiting list due to your wife's unexpected handicap. See this link: http://www.rijksoverheid.nl/onderwerpen/huurwoning/sociale-huurwoning-huren

To more directly answer your question: I don't think there is any limitation on how your family needs to get the money to lend it to you. They could lookinto a personal loan (persoonlijke lening), but they might not be able to borrow enough. The Netherlands does not have a direct equivalent of a Home Equity Line of Credit (HELOC), but your family could potentially get a second mortgage (tweede hypotheek) on their house in order to get the money to lend you.

However, be aware that this is a very risky endeavor. There are lots of unknowns that could leave you unable to pay or your family unable to pay. Receiving the money as a gift with the intention to repay it but no formal agreement in place may also leave you and your family in a difficult position. I would encourage you to visit a mortgage advisor together to discuss scenarios.

Note that one possible option you may want to explore is a "family mortgage" (familiehypotheek). This is just a fancy way of saying that your family can act as (one of) your mortgage lenders. You and your family must comply with all relevant rules and regulations to do this, including them charging you interest and them reporting certain things to the tax authorities. Vereniging Eigen Huis has details on how to set such a mortgage up and how to manage the required reporting: https://www.eigenhuis.nl/webwinkel/hypotheekservice/familiehypotheek/

  • We earn too much for social housing. Thanks for the rest of the info! – Kevin Aug 13 '15 at 13:27
  • I'd be a bit more specific on the "gift" issue. If there is an intention to repay, then it's a loan not a gift. Claiming it is a gift is likely mortgage fraud (I'm not an expert in Dutch law but I assume it tracks the law elsewhere). But that means they have to be able to qualify with an additional 50,000 in debt. – Justin Cave May 29 at 22:17

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