I have set up a company/trust structure to purchase investment properties. Will this limit my choice in terms of lenders that accept this structure. If so, is there a better structure out there that won’t limit my choice as much but still retain the same benefits as the company/trust structure (eg asset protection etc). I have been advised by my accountant that the loan should be in my name. Are there lenders out there that are more company/trust friendly than others? (eg big 4 vs smaller lenders?) Or is it all dependent on your mortgage broker’s knowledge of how to “sell” (ie explain) this structure to the lenders?
Hope someone can help me out.
J.brahmsParticipant@brahmsJoin Date: 2004Post Count: 485
so long as income is fully verifed, generally,you won’t be restricted – if you are planning to self certify or use low doc options, yes, some lenders will only consider applications from individuals – so some choices will be removed.
i don’t know how you could ‘sell’ the structure any other way than it is – the entitiy is the entity – if i’ve missed something i’ll be corrected i’m sure
cheers brahmsGeronimoMember@geronimoJoin Date: 2002Post Count: 167TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Yes, pretty much all lenders will look at company/trusts on full doc.
On low doc, things are a bit different. ANZ, ING, Suncorp all seem to have problems in lending to companyies/trusts on low doc loans.
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Thanks for your responses. I will get a quote for the bank legal costs.
I had pre-approval from a major bank in my own name. When I found a property that I had signed the contract for in the name of the company/trust structure, their reply was with me as a trustee it is ok. Howvever they wouldn’t accept my company as a trustee. They said it needs to go to business style lending not consumer lending. Are they just making this up because they found something they didn’t like in the contract? They hadn’t even reviewed my company and trust documents. Very confusing…