Would converting your PPOR into a trust, effect your borrowing ability ?
hwd007
I don’t know about your borrowing ability but to transfer your PPOR into your trust is a sale and requires stamp duty to be paid.
So you don’t own (exactly) and therefore your mortgage wouldn’t exactly exist anymore. The loan still needs to be acquired by the trust so it depends on what type of trust you have as to whether the loan is in your name or not.
Leigh K[
]Read, learn, grow but most of all just do it.
hwd007
The information provide by Chris Batten is worth reading, here it is:
The family home
The family home should be acquired in individual names where possible to take advantage of the various exemptions and concessions provided for in relation to land tax and capital gains tax. The use of trusts to hold the family home should be considered as a last resort where either there is a single person who is highly exposed to litigation or both husband and wife are both at risk of litigation.The structure of acquiring the home 99% in the non-risk taking spouse’s name and 1% in the risk takers name should always be considered.
You can find more information at:
http://www.chrisbatten.com.auHope this will help you in some ways.
Chandara
Borrowings for a trust or company has the same effect as borrowing as an individual. This is because the bank will require the Trustee to guarrantee the loan. If teh Trustee is a company, then all directors must guarrantee the loan. It appears on your CRAA.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
cool thanks peoples.
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