A reader writes:
I initially discussed with my boss, who is also the sole owner of the company, the possibility of him giving me a home loan. The home loan was for me and my future spouse to buy a property to settle down. The amount is approximately 10% of the property price.
However, I have decided to purchase a property for investment of the same amount and defer my plan to buy a property for personal use.
Should I tell him the truth that I am using it for investment purpose? If yes, how do I convince him to lend me the down payment that I am going to use for my property investment?
I am speechless, so bear with me here.
This is a terrible, terrible plan.
First of all, your boss should not be loaning you money. It's fraught with potential for huge problems -- more on your boss' side than yours, in fact. For instance, if you're performing poorly down the road, will he be less inclined to fire you because he's tied to you in this way, and he'll lower his chances of getting paid back if you're unemployed? Or, aside from that, will other employees think that's happening? What happens if you're late on payments or default altogether? Do you really think that won't affect your relationship at work?
But that's not even your question. Your question is whether you should lie to him to get the loan.
Have you thought about what will happen if your boss discovers this lie? (Which he very easily could. He sees your address on your payroll tax forms, for god's sake.) And more to the point, how could you feel good about lying to the person who is very generously offering to make you a large loan?
And you also want to know how to convince him to loan you the money for a different use. I have no idea. I wouldn't recommend trying.
I recommend a bank, not your boss.
Seriously, back away from this whole arrangement. It is a terrible, terrible idea.