Hi,
I'm a first home buyer and my parent has offered to loan me $30,000 towards my deposit with an interest-free loan.
They are on the pension. Will this affect their pension at all?
Is there a time frame I need to repay the loan?
What formal paperwork do they need to provide Centrelink or the ATO?
Thanks
That's great that your parent is prepared to help you purchase your first home by providing a loan.
Services Australia (formerly Centrelink) administer the aged pension so you will need to ask them what information they require about the proposed loan.
From our side of things I would recommend that you have a legal loan agreement drawn up by a solicitor.
This will be sufficient evidence to demonstrate that the repayments are not assessable income for pension purposes.
Your bank may well have certain requirements around the loan term as well. It would sensible to check with them on that too.
That's great that your parent is prepared to help you purchase your first home by providing a loan.
Services Australia (formerly Centrelink) administer the aged pension so you will need to ask them what information they require about the proposed loan.
From our side of things I would recommend that you have a legal loan agreement drawn up by a solicitor.
This will be sufficient evidence to demonstrate that the repayments are not assessable income for pension purposes.
Your bank may well have certain requirements around the loan term as well. It would sensible to check with them on that too.
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