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While a few years ago people could easily get a mortgage, irrespective of their income or credit score, the situation has changed dramatically now. Easy credit standards are not good for the economy, so mortgage loans are no longer easy to obtain, on the contrary. This is currently a problem in Canada as much as everywhere in the world especially for young couples that wish to start a family, but cannot afford to buy a house without a loan. It is of course preferable to pay a monthly fee and a small interest to stay in your own house than paying rent, but young people are often unable to bring sufficient evidence that they can pay back the money they need to borrow and obtaining a mortgage loan is almost impossible in this case. Looking at the situation of Ottawa home mortgage loans, you can clearly see that young people are not generally considered trustworthy enough. The much more stringent credit standards have determined young adults to seek other solutions and now the so-called intra-family loans are popular among newly-weds.

The intra-family loans are similar to standard loans with the only difference that the borrower is family with the lender and the interest rates are generally lower, not to mention that the money remain in the family, which is clearly an advantage. In other words, children get a loan from their parents instead of a bank and they can pay back the loan and the interest to their family instead of a bank. As beautiful of a story at it may seem there are certain downsides to intra-family mortgage. First of all, the mortgage loan has to be recorded in order to allow the borrower to deduct the interest. If the loan is not properly documented, the loan can also become a source of conflict and friction within the family. There are plenty of cases of people resorting to intra-family loans that got their home, documented the loan, but missed to fill in some paperwork and they had to solve many other problems surfacing after that mistake. Before you think about intra-family loans, you should check out whether you can obtain Ottawa home mortgage loans. A good broker can help you find something advantageous and you can avoid involving your family in money problems.


Intra-family mortgage loans are a great solution for young adults that need an extra help at the beginning of the road, but not anyone can take advantage of it. The reason for that is obvious: not all parents can afford to lend money to their children. This loan is only possible, if the parents have enough money on their name to afford lending their children for a new house, not to mention that they have to be willing to lend the money. Because money conflicts are the last thing you want to drag your family into, people generally resort to intra-family loans as a last measure.

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