I'm a US Citizen, married to a Canadian Citizen. She is now a US Permanent Resident.
Her parents have offered to us, very generously, to be the private mortgage lender for a home for us in North Carolina. They seem to be willing to do so not for us to not pay them back a mortgage, but to help us incase the economy is not doing so great.
What is the impact on us, tax-wise, and what would be the impact on them tax-wise, for both the Canadian and US Side?
This can be a sizeable mortgage, possibly around 800k USD so obviously I am concerned for what might happen.
Anyone have any experience with this or guidance? I suppose, the other option is they can give us a downpayment sort of cash gift - but the other option for them as a Private Mortgage would have its explicit advantages.
Thoughts?
Canadian In-Laws & Private Mortgages?
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