Family money
A family mortgage worked example: €250,000 from parents to child
What does a family mortgage look like in real numbers? This worked example follows €250,000 from parents to child, through the rate, the monthly payment, the deduction and the optional gift combo.
The setup
The parents lend €250,000 for an apartment, at a market-conform 4.5% for a secured home loan, annuity over 30 years. The monthly payment is about €1,267. Of the first payment, roughly €937 is interest and €330 principal.
Because the loan buys the child's own home and repays annuity-style within 360 months, that interest is deductible. In the first year the child deducts about €11,100 of interest, worth a few thousand euros depending on the tax bracket.
The optional combo
The parents may gift €6,908 per year tax-free in 2026. If they gift back that amount yearly, the child's effective monthly cost drops by about €575, while everything stays formally a market-conform loan with real payments.
Over five years the parents move roughly €34,500 of support completely tax-free, and the family keeps the bank's margin inside the household.
FLUX5 runs this exact calculation for your amount and rate in the gift optimizer, then generates the contract to match. The example becomes your reality in about ten minutes.