Can I utilise trust structure with 95%LVR?

Hi all,

I have gone through the forums and could not see this discussion so apologies if this has been covered before.

I just signed a contract to purchase my 3rd IP in joint names (husband + wife). I wanted to utilise my DFT but I heard from people that using a DFT structure would mean the bank would only lend up to 80% LVR.

I talked to my personal banked about this as I wanted the best chance to get the loan but that if they would treat it equally, then I'd like to use a trust structure.

My banker told me that they would treat borrowings in the same way (trust or in personal names) and that I could borrow up to 95% utilising the trust structure.

I was really surprised by this as I have spoken to many brokers who indicated that obtaining finance over 80% LVR for trusts are quite difficult.

She said nope. It's fine - we can lend up to 95% even if trust structure.

I suppose my question is - well not really a question, what are your experiences in borrowing using trusts lately in terms of the LVR.

I should also add that I have now asked my solicitors to ask ther other side if we could prepare a new contract with my DFT as a new entitiy. I suppose if I hear an overwhelming "NO BANKS WILL LEND TO A TRUST STRUCTURE OVER 80% LVR", then I can tell my solicitor to forget about it and proceed with the current contract.

The property is a residential house earmarked to be rezoned so I am wanting to build 3 townhouses on it at a later stage. Once the t'houses have been compleleted, after all costs, the property will be CF+ by about $600 per week.

Many, many ,many thanks in advance for your advices. Very much appreciated.

If you can DREAM it, you can do it!

Yep, it should be fine. Sometimes there may be higher rates if you have a company as trustee, but it will depend on the bank.

Terryw
Finance Broker
Solicitor

Wont be any issue with the 95% lend however the issue could come down the track when you have 3 properties on the single title.

Many a lender has reduced its policy on multiple dwellings over the last couple of weeks.

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Thinking of buying your next investment property using a SMSF. Email me for a copy of my SMSF EBook.

Thank you so much Terry and Richard.

I have been reading the threads (almost all of them) and note that both of you make significant contributions in this forum
Thanks for your thoughts and advice!!

If you can DREAM it, you can do it!