Does the trust have $50,000? If so it can lend you.

If not, then how could it pay you? It could borrow but if you are the person behind the trust and cannot borrow then your trust probably cannot either.

Opening a company on top won't formalise things! I thnk you are mixed up a bit here. You might be talking about establishing a company to act as trustee – but if your trust has already been set up and it already owns land then this is no simple matter. First, you will have to establish if stamp duty will be payable on the transfer of title and then you will have to actually transfer title to the land. This will also entail getting new loans if the land is used as security.

This is a complex Q. It may be possible to convert future profits into income at present – but since trusts cannot retail income it would be to be distributed – but I guess it could be done as  loan account.

You need a good tax advisor for this.

If you borrow the $120,000 from redraw the interest will only be deductible if this is used for investment/business.

In NSW there would be stamp duty payable if you bought your wife's interest in the property. What do you mean about asset protection?

With a unit trust this clearly separates percentage ownership. So you could have 60 units and him 40 etc. You can also do with your units as you please – such as have them held by your discretionary trust. You could transfer some later to other people without having to change the title deeds on the property etc.

One advantage in addition is that often one partner will want to get out of the deal after a whle for various reasons. This is much easier to do with a company owning the property as trustee for the unit trust. The one getting out just sells their units to the remaining person or to another person.

It could be possible.

But not without LMI or a similar risk fee like on the ING products.

They wouldn't lend on end value. Generally it would be based on the fixed price building contract.

I don't understand that sorry.

There is no way to make that $10k deductible.

If your loan is $325,000 (including $10,000 redraw which is from extra payments) and you are moving out and into a new place, then the interest on the $320,000 should be deductuble (providing you had never redrawn from this loan).

You can then set up a new separate loan for say $20,000. This $20,000 could be used towards the new PPOR, but the interest would not be deductible because it is private purpose borrowings.

You could then get a separate loan for the PPOR with another lender or same lender. If you have other cash and/or use the $20,000 loan then you would not have to cross collateralise the loans.

(PS. this is why you should never pay down a loan and why an IO with offset can work out better).

Yes.

Taking money from a loan, including a redraw , is new borrowings.

Broker would likely get a new upfront commission from the new lender. This could be the motivation.

Watch out for withdrawing money from the loan as if it goes towards the new PPOR then the interest won't be deductible and you will have mixed purpose loan.

Possibly wouldn't include interest unless you didn't claim it along the way. Also incl buying and selling costs, commissions for agents, advertising for sale, legals etc