Loan advance to son to get on property ladder

[Haille]

I understand that my wife and I can gift our son €6000 per annum to get a deposit for house. Can this exemption be used to loan our son over a number of years a further sum to get on property ladder?

 

[rob oyle]

In short and in theory, yes. But it will be of little help if your son also intends taking out a mortgage to fund the purchase - the financial institution will want to know that there is no recall from the Bank of Mum & Dad for funds given.

 

[Steven Barrett]

First of all the bank will ask you to complete a form to say this is a gift. You can then gift this to your son and have your own document that supersedes the letter to the bank, saying it is a loan. Each year, then write and sign a letter to your son writing off €6,000 of the loan as a gift.