All Topics / Finance / Company/Trust Friendly Lenders

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  • Profile photo of p0sitiveCasHfl0wp0sitiveCasHfl0w
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    @p0sitivecashfl0w
    Join Date: 2003
    Post Count: 133
    June 22, 2004 - 10:22 pm

    I have set up a company/trust structure to purchase investment properties. Will this limit my choice in terms of lenders that accept this structure. If so, is there a better structure out there that won’t limit my choice as much but still retain the same benefits as the company/trust structure (eg asset protection etc). I have been advised by my accountant that the loan should be in my name. Are there lenders out there that are more company/trust friendly than others? (eg big 4 vs smaller lenders?) Or is it all dependent on your mortgage broker’s knowledge of how to “sell” (ie explain) this structure to the lenders?

    Hope someone can help me out.

    J.

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485
    June 22, 2004 - 11:15 pm

    so long as income is fully verifed, generally,you won’t be restricted – if you are planning to self certify or use low doc options, yes, some lenders will only consider applications from individuals – so some choices will be removed.

    i don’t know how you could ‘sell’ the structure any other way than it is – the entitiy is the entity – if i’ve missed something i’ll be corrected i’m sure

    cheers brahms

    Profile photo of GeronimoGeronimo
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    @geronimo
    Join Date: 2002
    Post Count: 167
    June 23, 2004 - 2:37 am

    Hi J

    Just make sure you get a quote on the bank’s legal costs as in some cases it will be extra to review the trust deeds.

    Brendon

    Acute Mortgage Reductions
    http://www.acutemr.com.au
    [email protected]

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 23, 2004 - 2:45 am

    Yes, pretty much all lenders will look at company/trusts on full doc.

    On low doc, things are a bit different. ANZ, ING, Suncorp all seem to have problems in lending to companyies/trusts on low doc loans.

    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 p0sitiveCasHfl0wp0sitiveCasHfl0w
    Member
    @p0sitivecashfl0w
    Join Date: 2003
    Post Count: 133
    June 23, 2004 - 5:41 am

    Thanks for your responses. I will get a quote for the bank legal costs.

    I had pre-approval from a major bank in my own name. When I found a property that I had signed the contract for in the name of the company/trust structure, their reply was with me as a trustee it is ok. Howvever they wouldn’t accept my company as a trustee. They said it needs to go to business style lending not consumer lending. Are they just making this up because they found something they didn’t like in the contract? They hadn’t even reviewed my company and trust documents. Very confusing…

    J.

    Profile photo of p0sitiveCasHfl0wp0sitiveCasHfl0w
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    @p0sitivecashfl0w
    Join Date: 2003
    Post Count: 133
    June 23, 2004 - 6:05 am

    Is this a Westpac policy?

    J.

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