Mortgaging your home to friends or family

Hello,

Have you got any information about how to mortgage your home to friends, family or other acquaintances? How should the contract be written and authenticated?

Thanks.

Hi there,

It is technically possible to get a loan from a private individual and offer a property as collateral. Read the moneyland.ch guide to private lending for tips on how to protect all parties involved and avoid confrontations.

Mortgage interest rates at mainstream lenders are currently very low, and finding a private investor that will match market rates might be difficult. On the other hand, if the lender is a friend or family member, they may charge little or not interest at all.

In some cases, you may be willing to pay above-average interest rates. For example, a private loan may allow you to buy a home even if you do not meet the mortgage affordability requirements set forth by banks.

If your financial setup is complex, a person close to your who understands your financial situation may provide a customized loan which better suits your situation than a standard mortgage from a conventional lender.

Best regards from Moneyguru.

More about mortgages:
Interactive mortgage comparison
Mortgage affordability explained
Private loans explained