Have a look at recent Law Central Newsletters, back about 6 months ago, http://www.lawcentral.com.au. I don't think things are as bad as these people are making out.Maybe they are just trying to scare their 'clients' into making unnecessary changes to earn more fees. Are these people who set up the trust solicitors or accountants?

Hi LizI think it should probably be ok. I have gotten a few through on low docs. Try St george too, they don't use PMI or GE.

I've done a deposit bond when using a trust. Cannot remember who I used now. Anyway, it is not really necessary to tell them about the trust anyway. just get the bond in the trustee''s name

Sounds like your lender didn't look at the contracts very well. You will need to get them to fix it quick. There should be no reason to cross sec the two, and they can reissue mortgage documents within a few hours if you push them.

I had one of these this week. client failed to mention their car loan, and the lender found it on their credit check. They didn't seem too concerned about it, just asking for the details are proceeding.

L.A Aussie wrote:

Terryw wrote:
Hi Have a talk to a financial planner regarding which funds. I would be reluctant to name them in case they bomb out. There various sites where you can search past returns. one is http://www.morningstar.com.au I think. Terryw Discover Home Loans Terry@discoverhomeloans.com.au Send an email to get my newsletter.

The…[Read more]

No, I don't think it would be possible. What you could do is get your parents to access the equity and to lend or gift you the deposit for your property.

Yaz,Keep reading the forums to learn about trusts. But using a trust will not help your borrowing capacity as the lenders will still look at the individual behind the trust to determine borrowing cap. Whether you have $1mil borrowings in your name or in your company with you as guarantor, it is still the same – you are responsible for $1mil in…[Read more]

What you would want to do is to make your new IP loan for the trust as high as possible and use any spare funds to make the PPOR loan as low as possible. A simple way is to cross collateralise. This not ideal, but may be ok for a few years until the IP increases in value and can be released.Another way is to settle on the PPOR first and then use a…[Read more]

I know of a developer who was having trouble selling his units and had offered potential buyers vendor finance with him lending 20% deposit, interest free I think. 30-40% is a big ask.

Technically you should fill in the statement of financial position as of the date you sign it, if you have not accepted the NAB's loan offer, then you don't really have the loan yet. You also don't really own the property yet as you have not settled.

I can't think of any benefit of discharging the loan a bit early.

BTW, there is an exellent thread on this topic on the somersoft forum.

Trusts do not pay tax, it is the recipient who pays the tax. Therefore the rate of tax will vary depending on the beneificiary's income in that financial year. If you distribute to a company, the rate is fixed at 30%, if an individual, then the rate will vary from nil to 48%

Thanks Elka, knew I had read it somewhere – but as you said it may not apply here.But the 6 month overlap rule may apply – Karen may be able to claim both as the main residence for a period of 6 months. See Elka's link above for an example.

Hi MarcGetting a loan for a trust is the same as getting a loan in your own name almost. ie if you qualify on your own, then you will qualify for the trust or company. St George are good for expats, no aussie income needed.I think the love and affection clause would not apply to a situation like this. It would probably be just between spouses as persons.

TrajikI recall reading somewhere that you can still class a place as your main residence as long as your live in it as soon as practical after settlement. have you heard of this before, or am I imagining it.

CJMost of the major banks offer good rates and 100% offsets on the prof packages.

It will be hard to find a FP that recomends direct property. You could try Richard, QLDs007 on this forum, he is both a broker and a Financial Planner.

Seek the advice of a good accountant. I beleive that, if structured correctly, the interest on a LOC that is use to pay other expenses relating to property, including other interest, should be deductible.