I have a query regarding borrowing through a beneficiary trust. Can anyone tell me how this works please? I am looking at setting up such a structure (as per Wealth Guardian), but am finding this difficult with the banks. Many are saying that I will have to stand personally as guarantor for the loan, which will mean that funds borrowed this way would shortly dry up as banks would be reluctant to lend me money when I am guarantor on multiple loans. Banks whom I have approached are toey about guarantees on the loan – apparently a first mortgage across the property if it is held within a trust structure may not be enough. They have concerns about the recoverability of their funds if it all went pear shaped.
Any tips on how others are dealing with this please?
Thanks,
Pegasus
… Many are saying that I will have to stand personally as guarantor for the loan, which will mean that funds borrowed this way would shortly dry up as banks would be reluctant to lend me money when I am guarantor on multiple loans..Thanks,
Pegasus
I believe Steve McKnight got around this because the lenders did not ask him how many loans he had guaranteed.
Using a trust doesn’t necessarily mean you can buy more properties than you could as an individual.
A trust is used for asset protection and some tax advantages.
You need to provide guarantees until the trust has enough assets to satisfy the lenders.
TerryTerence McMahon
HomeWin
FinanceI agree with Terry. Borrowing through a trust is not difficult, but all lenders will require a personal guarrantee from the trustee or directors of the trustee company.
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
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