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.