All Topics / Finance / Lending to a trust

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  • Profile photo of wobblysquarewobblysquare
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    @wobblysquare
    Join Date: 2010
    Post Count: 95

    Can anyone advise which banks or lending institutions will lend to a family trust (corporate trustee) using my income as servicability gaurantee ??

    CBA claims not to anymore

    Cheers Wobbly

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

    All.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of SMSF101SMSF101
    Member
    @smsf101
    Join Date: 2012
    Post Count: 49

    Why not try the so called self managed superannuation funds, I heard it's the fastest and largest in the superannuation industry, with more than 458,000 SMSFs in Australia as of December 2011…. The rules and regulations are regularly changing. I, too will check back on those updated rules for a living.. thanks :)

    Profile photo of wobblysquarewobblysquare
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    @wobblysquare
    Join Date: 2010
    Post Count: 95

    is that everyone but CBA. Or do you include CBA in this as well ?

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

    i have no experience recently with CBA but can't see any reason why they wouldn't do a trust.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
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    Profile photo of wobblysquarewobblysquare
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    @wobblysquare
    Join Date: 2010
    Post Count: 95

    Terry,

    my understanding is that CBA (and others) will lend to a trust – BUT they no longer accept a servicability gaurantor. Meaning that my income is irrelevant, and only the trusts income is considered.

    Hence the question

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

    Hi Wobbly,

    Can't imagine that would be the case as most trusts would have no income and those that did have income shouldn't be buying assets for asset protecton reasons.

    I will ask my contact at CBA and report back.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Wobbly CBA will take Guarantor income into consideration but they don't like doing a loan over 80%.

    Personally i think they are one of the worst lenders when it comes to Trust deals and think you could do a lot better

    Wouldn't quite as far as Terry in saying every lender will lend but many majority will.

    Difference is at what interest and the costs and charges of the loan itself.

    Cheers

    Yours in Finance

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    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    Terryw wrote:
    Hi Wobbly,

    Can't imagine that would be the case as most trusts would have no income and those that did have income shouldn't be buying assets for asset protecton reasons.

    I will ask my contact at CBA and report back.

    His response:

    They should take into his personal income depending on what type of trust and how the application is set up.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

    Profile photo of HomeLoanExpertsHomeLoanExperts
    Participant
    @homeloanexperts
    Join Date: 2007
    Post Count: 43

    CBA are not great for trusts anymore.

    A few pointers for CBA trust loans:

    • They will take income from directors of the corporate trustee who are guarantors.
    • They will not take income from beneficiary guarantors, except in exceptional circumstances.
    • They no longer like to do the loan in the name of the directors and have the property in the name of the trust.

    There are plenty of other lenders that can do this without problems.

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