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    Zero rate home loan has a capital catch

    The article states, 'In return, the borrower agrees to surrender up to 40 per cent of future capital gains made over a 25-year loan term' Does this mean that come the end of the 25 year loan period the bank will force you to sell your home so that they can claim their 40% of the capital...
  2. S

    Zero rate home loan has a capital catch

    Simon, that's not how I understand it. I don't think the borrower will be able to escape the 40% capital gain payment to the bank once the house is sold, even if the 20% zero interest loan has been paid off. Or maybe I mis-understood your point :o
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