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Borrowing home loan from parents and mortgaging it later.

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mugen | 31 Oct 2012, 03:25 PM Agree 0
Hi All,

Last year Nov 2011, I have borrowed money from my parents in full and purchased a property for $250k. My parents are also kind enough to not charge me interest.

At this point in time, I have paid off $50k to parents and the current owned amount to my parents is $200k. I have also just moved out of my property to live with my parents and currently renting out my property.

Now with a stable and secured employment, I am planning to take out a mortgage on the property for the remaining $200k and pay back my parents.

Now the million dollar question is, Will I be eligible to claim deductions on the interest incurred from my 200k mortgage to be taken out?

Any input would be greatly appreciated. Thanks!

Mugen

  • | 29 Oct 2014, 02:26 PM Agree 0
    ofcourse you can.
  • Christian | 04 Nov 2014, 06:40 PM Agree 0
    I am no expert but I think you are eligible. Hope that you will be able to complete the payment of the money you owned with no time.
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