A private loan next to a bank mortgage

A bank mortgage and a family loan can coexist, and for many first-time buyers the combination is what makes a home affordable. The family loan typically covers the gap between what the bank lends and what the house costs, including buyer costs.

What the bank thinks about it

Banks count every debt when calculating your borrowing capacity, and a family loan is no exception. The monthly repayment reduces what the bank will lend you, roughly euro for euro in monthly terms. Hiding it is not an option: mortgage applications require you to declare all debts.

Most banks accept a properly documented family loan. Some even prefer it over a personal loan from a lender, because family lenders tend to be flexible if circumstances change.

The structure that keeps everyone comfortable

Document the family loan before the bank application, not after. A signed agreement with a market-conform rate and a repayment schedule reads exactly like any other formal debt, and the bank can assess it in one pass.

Consider an interest-only or paused-start structure for the family loan in the first years, as long as it is not needed for interest deduction on that part. Every euro less in monthly obligations increases the bank mortgage.

FLUX5 produces the contract banks ask for: formal, market-conform, with a clear schedule. Families hand it to the mortgage advisor as a PDF and move on to the fun part, the house.