Pay attention to the release of the family mortgage Money

With a family mortgage, parents (or grandparents, or uncles and aunts) play for the bank. Lenders receive interest and are reimbursed, and the child can use the mortgage interest deduction. For parents, the family mortgage is interesting because their money is better than a savings account. It is even possible to surrender (part of) the interest, up to more than 5,000 euros per year.

If the child wants to be eligible for the interest deduction, that interest must be "in accordance with the market". And such is not the case when a father lends nearly three tons to his son, with a period of fifteen years and an interest rate of 9%, according to the tax authorities and now the court in The Hague

The mortgage that the court owed the judgments relate to the end of 2015, and then the average interest rate of the "normal" lenders was about 3%. Because the son can not provide collateral against the loan, something can be added, but 9% is really too big, according to the judge. The risk that the son can not cope with his monthly expenses is too low for that.

According to the tax authorities, the son and his partner can only deduct an interest of 4.5%