Hi All,
I am looking at setting up a Hybrid Unit Trust with a company as trustee. Whilst that is being set up I want to get pre approval on a loan to purchase an IP in Qld on behalf of the trust. I was wondering what the best way to go about this is. Do I just get the pre approval for the loan in my name or do I need to get the trust involved from the start? This will be my first property so it all seems a little confusing at the moment. My goal is to have at least one IP by the end of year..[
]Any suggestions or comments would be appreciated.
Thanx…
Adam.
[?][?]Adam
the bank will want to see the trust deed to make sure the trust is allowed to borrow etc. But since you will be guarranteeing the loan, you could apply in your name first-if you qualify the trust will. But you will have to submit another applicaiton later in the company/trust name.
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
OK, thanx Terry.
I have also heard that there are a few banks and lenders which are slightly hesitant in regards to dealing with trusts/companies. Have you delt with any that do not make a big issue out of lending to these type of structures? I was thinking the NAB or ANZ.
Adam..
I have been advised that Suncorp (in Qld) don’t do no docs on Trusts with a Coy as trustee.
Knowledge without action is not knowledge at all
Alex
Most lenders will lend to trusts/companies. However, some won’t lend for trust/companies on the low doc loans-eg Suncorp and ING. You could still get these if you had a non corporate trustee and borrwed in individual names on behalf of the Trust.
Another potential problem is that recently some lenders are also requesting that if loans are in company names, then the company provide a fixed and floating charge to the bank as well-as extra security. This is a real pain in the arse if you already have a few properties in that company name.
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
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
