All Topics / Finance / Interest Rates for trust setups

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  • Profile photo of anthonyqanthonyq
    Participant
    @alpha22
    Join Date: 2011
    Post Count: 27
    February 28, 2012 - 11:44 am

    Hello,

    Does anyone know the going interest rates for borrowings for a trust setup in the name of a trustee company?

    I know it's more than standard rates (ie held in own name), but i'm paying 6.5% currently and wanted to know what my new property would be looking at?

    Thanks

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    February 28, 2012 - 12:01 pm

    More??? who says….

    Family trust, unit trust, discretionary trust – at the same discounted rate as personal borrowers 6.4% etc…
    Hybrid trust – Depends how it’s set up and how complex
    SMSF – Normally changed at the SVR with no discounting ; but some lenders do provide some discounting
    Property Unit trust – Depends how it’s set up and how complex

    Having a corporate/company trustee is fine.

    Question is; what sort of trust do you have and how complex is the set up?

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

    Profile photo of anthonyqanthonyq
    Participant
    @alpha22
    Join Date: 2011
    Post Count: 27
    February 28, 2012 - 12:15 pm

    Hello, It’s just a discretionary trust with a trustee company. Current lender is Cba so was hoping they were ok with this. It’s my first purchase in the trust so I’m still learning the ins and outs.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 28, 2012 - 12:48 pm

    CBA may not have a clue so good luck.

    Just make sure that whoever you use sets it up correctly as it can be an expensive mistake if not done so.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ekghmgekghmg
    Member
    @ekghmg
    Join Date: 2010
    Post Count: 10
    March 9, 2012 - 12:37 pm

    I am with CBA with corporate trustee. Rate = same as my personal discounted rate. Might depend on the venture you are trying to fund, ie developments etc ‘may’ fall into business lending which will have a different rate.

    It was challenging to get it all set up, but I went through a broker so wasn’t really my challenge, I just heard all the stories along the way.

    Westpac didn’t want to play ball at the time (some 18mths ago)

    Regards-Eamon

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 9, 2012 - 11:43 pm

    Even now Wesuck will probably find it hard to grasp the DFT concept.

    You have to understand that lending to Trust structures forms a very small part of a lenders overall loan book so like if it is too hard the easy answer is No we dont do it or Yes we do it but the rate is XYZ above our standard rate or the applic fee is now ABC.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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