All Topics / Help Needed! / Income from a family trust?

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  • Profile photo of J-RockJ-Rock
    Member
    @j-rock
    Join Date: 2004
    Post Count: 7

    Hi, my situation is i am currently in the process of hunting down my first IP in the range of $220000-$260000. I am going halves with a partner who is full-time employed and satisfies all the loan requirements of the bank, however as I am a full-time uni student I have submitted my income details as the distributions I receive each year from a family trust. Whilst I do not receive any group certificates or tax returns from this distribution I have a signed statement from my accountant stating I receive, and will continue to receive, these distributions. However the mortgage broker I have consulted has been rejected by Suncorp and ING on the basis that they need more proof, in the way of group certificates, that I receive this money.

    Without going into details of the family setup, it would cost my parents a sizeable amount of money (due to work on the accountants behalf) to draw up group certificates, tax returns etc to satisfy the ‘tick-the-box’ requirements of the lenders.

    My question is does anyone know of any lenders that are particularly flexible when it comes to these sort of things. Both my friend and I can show a 5% savings history over the past six months and have all the deposit and closing costs covered- the only issue is finding a lender who will cover my half of the loan.

    Thanks in advance, Joel.

    PS My parents are also willing to guarantee my loan.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Surely ATO assesement notices would do the trick. You cannot get group certificates as it is not employemnt. You are kind of self employed and should only have to show your tax returns and maybe the trust tax returns. You must have tax returns unless you are earning less than $6000 pa in taxable income??

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of kpkp
    Member
    @kp
    Join Date: 2004
    Post Count: 509

    Had a jv partner who was using his family trust as his investment vehicle.
    His income was apportioned ( by his employer) so that some was going to the trust on a monthly basis.
    ANZ local branch were happy with this, on the basis that the income to the trust was regular and proven.
    Surely you could show bank statements confirming the trust distribution to yourself ??

    KP

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The trouble with trusts is the income is discretionary. One year you may get some, the next could be different.

    I guess it is the same with employment though, you could get fired anytime.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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