All Topics / Legal & Accounting / Loan – Hybrid Discretionary Trust Question
Hi !
Does anyone know for HDT’s:
1. As the loan is in your personal name not “company ATF ABC Trust” does this limit your borrowing capacity as you could be earning less than your trust ?
Or it doesn’t affect borrowing capacity if the trust is positive cashflow and can service itself ?
2. Has anyone had trouble convincing the bank that the loan is in your name but the title of the property is in the name of company trustee ?
Thanks for your response [exhappy]
Hi
It wouldn’t affect your borrowing capacity. overall the incomes for yourself and the trust would be the same.
Having titles in different names does create problems tho. Some lenders don’t like it, others accept it.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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