Borrowing deposit for a mortgage from the bank

As above: is it possible to borrow the 20% deposit required for a house? Does such a loan scheme exist? My wife and I have discussed borrowing the money from her mother, but that would require her mother to keep her business running and put off retirement which I do not feel good about.

I read this thread 2 loans which got me thinking whether or not it’s possible.

Any information would be much appreciated.


Normally you cant borrow money for the deposit( edit: i think). From a bank i mean.

That would kind of defeat the purpose of the deposit.

However, people have been known to borrow money for some other reason and then use that as a deposit. Naughty bastards.

Even if you could get a loan for the deposit, i would think very hard. Paying back a mortgage and a loan will be a lot of pressure. And if you think you can do that, i would question why you cant save your own deposit.


Borrowing it for another purpose is what I thought unless they offered a different product at crazy interest rates. As for my MIL, I never got that logic either, but apparently that’s what happened when my BIL borrowed money for a deposit.

Maybe your MIL thinks that she will decide to just let you guys keep it which is why she is thinking she will have to delay retirement.

Call it a loan at first to save herself from arguements with other family members.

My MIL gave one of her daughters the deposit but told us it was a loan. After a year or two, noone remembers.

We did this when we bought our first house many years ago. We put down some cash, and then borrowed the rest. As I remember, it’s called shing-dai.

One would assume that if you borrowed money via a bank, it would show up when they check for giving you a loan. There’s a term for first, second, third lenders etc, I forget what they are called. But most lenders on real estate what to be first, for obvious reasons.

Taiwan has a long history of “non bank” lending. Which has its pros and cons. It is common to this day. But for some accounting related things (like starting a company/upping the capital ) they (banks) are getting increasingly more thorough in checking where that money came from. When buying a home, that seems less of a problem using family money. They will be checking more for tax fraud then. With that in mind, you should be able to navigate the situation :slight_smile:

Personally I consider causing a Taiwanese mother in law to work longer for your benefit far more dangerous than even mafia lending :hugs: I’d rather worth 2 extra jobs than have that guilt trip for the rest of her life causing problems. But if yours is a decent human, amazing!!

Don’t borrow money from family. Especially from in laws.


The deposit is there to protect to you and the bank from price fluctuations that are a real possibility. If you don’t having savings to pay for the deposit then consider if you are really financially ready to buy a home.

To me it’s pretty clear that you are not if you are considering a second more expensive loan or borrowing from family members. Of course there are caveats to this if you are only looking for the last 5 % or something but if you have a zero savings that’s worrying.

Years ago I used to work in a large Retail Bank in Australia, and for a while was a Loans Officer.

There were (and for the most part, still are), two sayings that we worked on.

  1. If you have to borrow the deposit, you can’t afford the home.

  2. The BOMD (Bank of Mom and Dad), was known to exist and any deposit coming from that source was not discussed officially, unless the BOMD wanted a 2nd Mortgage (I never saw one requested), in which case, #1 applied.