All Topics / General Property / Impact of trust structure on finance

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  • Profile photo of MarkyMarkMarkyMark
    Member
    @markymark
    Join Date: 2003
    Post Count: 132
    January 24, 2004 - 2:34 am

    Hi,
    I was talking to somone the other day and they were saying that when applying for finance, if you are investing under a trust structure that the bank will charge aproximatly $200 to inspect the trust deed? Is that accurate? Will they charge you this every time I apply for finance?

    He was also saying that if I have a trust with a corporate trustee the loan amount will be restricted to 90% plus the company will need 2 years trading history. Does any one know if this is correct?

    Thanks,

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 24, 2004 - 2:54 am

    None my clients has ever had to pay extra for getting a loan thru a trust, but I too, have heard of that (somewhere???).

    Generally loans for trusts would be at about 90% LVR max-if a corporate trustee, if an indivdual trustee, then 95% LVR is possible.

    You do not need 2 years trading history. You are able to get finance thru a new trust easily.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of MarkyMarkMarkyMark
    Member
    @markymark
    Join Date: 2003
    Post Count: 132
    January 24, 2004 - 3:16 am

    Thanks Terry,
    Good to know about the LVR on the corporate trustee.

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225
    January 24, 2004 - 3:22 am

    Probably the $ 200 story came about because the solicitor acting for the lender may charge something extra to cover his time for needing to look at the deed.

    I doubt however that they would charge $ 200 as basically they have been squeezed by the lenders so that they charge reasonable prices.

    And I believe that generally they are very reasonable charges.

    There is plenty of competition out there so they have to fall in line if they want the work.

    I just looked up one solicitor’s charges and it indicates $ 150 + GST for additional documents.

    I would think that for mainstream lenders you may be paying the solicitor probably about $ 100 + GST

    However, if it is a tender point with you ask your broker to find out for you.

    Pisces

    Profile photo of MrIronmanMrIronman
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    @mrironman
    Join Date: 2003
    Post Count: 38
    January 24, 2004 - 5:30 am

    Hi all

    Why does a corporate trustee affect the LVR? I don’t see anymore risk[?].

    Regards

    Mr Ironman

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
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    January 24, 2004 - 1:32 pm

    It doesn’t. However some lenders are not prepared to lend to a trustee company.

    Pisces

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