Pros and cons of borrowing from family

Generally its best to avoid debt, regardless of who you are borrowing from. But if we are talking about borrowing for your house deposit, getting help from family could make it easier to get a mortgage or could make it possible, where it was not before.

Borrowing from family is not always easy, so here are some pros and cons.


  • It could let you buy a home by getting you over the deposit threshold

  • It could get you to a 20% deposit, letting you get better discounts on your mortgage

  • It could get you the better house you want if your own savings is a bit short


  • The payments for the family loan could reduce what you can borrow from the lender

  • It could be awkward at family events if not everyone is ok with it

  • If the parents need the money back before you can pay it back, things could get awkward

  • You will need to get more documents for insurance, and wills may need to be altered to make it all above board

If you think you need a loan from family to get your mortgage, have a chat to the DUX team so you can get it set up correctly.

Alan Borthwick