An interesting opportunity came up for me recently. I mentioned to my Dad that my current mortgage term is up soon, and he suggested that rather than renew with a bank, I should write up a mortgage with him, since he has enough available capital, is not interested in any stock or bond investments. He figures "why should my kid pay the bank money - better to keep it in the family".
We tentatively agreed that he would give me an unsecured personal loan, at 0.1% better than current best-available rates (likely Bank of Canada Prime), and we'd do a variable rate (calculated / adjusted yearly for simplicity). Rates in Canada are around 3% right now.
Cash flow is not an issue for him or me right now, and the mortgage is my only debt.
So, should I go for it? Any suggestions, warnings, advice, etc? All comments are welcome, especially frank ones - I have a thick skin, so no worries about hurting my feelings...