I saw this article in The Post and thought I’d summarise and share, because it’s quite a common situation.
This is a cautionary tale, for those aspiring to buy their first home becoming increasingly reliant on family members to help them gain a foothold on the property ladder.
Daniel Willems and his then girlfriend agreed to buy a family home with his parents, Joscelyn and Robert Willems. Joscelyn and Robert would sell their home and apply the proceeds to buying a new property, which would be held jointly.
An added issues was Daniel and his partner had more than $50,000 in debt, which meant the bank was reluctant to finance the mortgage before it was paid off. The parents agreed to do that.
This meant that once the debt was paid they purchased the house for $770,000, of which the parents contributed $157,898.10, and the mortgage was $616,000. Daniel and his girlfriend made no capital contribution.
Then later Daniel’s girlfriend left.
This is the story as reported in The Post.
