AaronParticipant@aroddJoin Date: 2016Post 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.Corey BattParticipant@cjaysaJoin Date: 2012Post 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.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,110
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