All Topics / Legal & Accounting / Loan – Hybrid Discretionary Trust Question

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  • Profile photo of Esther TanEsther Tan
    Participant
    @thewizard
    Join Date: 2003
    Post Count: 32
    February 10, 2006 - 1:10 pm

    Hi !

    Does anyone know for HDT’s:

    1. As the loan is in your personal name not “company ATF ABC Trust” does this limit your borrowing capacity as you could be earning less than your trust ?

    Or it doesn’t affect borrowing capacity if the trust is positive cashflow and can service itself ?

    2. Has anyone had trouble convincing the bank that the loan is in your name but the title of the property is in the name of company trustee ?

    Thanks for your response [exhappy]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 11, 2006 - 7:59 am

    Hi

    It wouldn’t affect your borrowing capacity. overall the incomes for yourself and the trust would be the same.

    Having titles in different names does create problems tho. Some lenders don’t like it, others accept it.

    Terryw
    Discover Home Loans
    Parramatta
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