Forums / Community / Opinionated! / Do banks still lend to Family trusts?

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  • Profile photo of AaronAaron
    Participant
    @arodd
    Join Date: 2016
    Post Count: 2

    Hi all, im in the process of setting up a family trust and just wanted to reconfirm that as the sole director and the sole beneficiary and guarantor, will this actually increase my borrowing capacity? Do banks really fail to ask if the guarantor is the guarantor for other loans?

    This seems like something they would have clued on to by now..

    Thanks! im a newby please be gentle.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    It won’t increase your borrowing capacity – it’ll more often than not *decrease* your borrowing capacity as lenders will then exclude any taxation benefits from the investment debt contained within the structure.

    Not disclosing that you’re a guarantor for other loans is nonsense and a great way to get in trouble with the lender if caught.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,016

    Very unlikely you would be the sole beneficiary of a trust – unless it is a bear trust.

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

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

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