Its financial firepower appears to have grown in recent years, but so too has the demand for its services and the size of the loans.
But that's generally not the practice and it would be seen as running counter to the logic of giving a child some financial assistance in what is a very competitive housing market.Effectively, it's calculated on the basis of the loss that the lender would be incurring by not having the money in a deposit account.So, if the parent was giving a loan of €100,000 with no interest rate attached, Revenue would consider that a gift of €2,000 a year.
The details hadn't been furnished but if the rate was to be based on the lowest mortgage lending rate available on the market, it would come in around 2 to 3%. "You can get a small gift of €3,000 from each parent that would be €6,000, which could cover the interest element." There's a well-documented shortage of housing and those who can afford to top up their offer for a property with parental cash are sure to get the keys to the house or apartment at the end of the day.
Figures are not available on the aggregate amount that's out on loan to children from family but Michael Dowling estimates that it could up to €1 billion a year.The inclusion of the measure in the Finance Bill without having been flagged in the budget last month took many by surprise.
people are unable to have families due to cost, not owning a home, living at home not being able to rent.. Then you have businesses moaning they cant find anyone to work for low wages ... people cant afford to live unless they are lucky to be born into a wealthy family
Another FFG policy designed to make it harder for people to become home owners. The reason these loans exist in the first place is because of the government policies!