Hi there,
Is it normal practise to provide a personal guarantee for a loan. The loan is borrowed through family trust with company as trustee.
The bank wants us to sign a personal guararntee and I was wondering if this is normal or can I refuse to sign and still get funds?
Thanks GregDepending on the Lender this would be a standard practice. Most will require this in order to complete the funding of your new purchase.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055Yip … this is how we do our purchases …..and most of the banks do it this way… unless the trust can show how it can fund the purchase…. which unless you have about 15-20 houses in the trust and can show massive surplus of income coming in….. then you will need to go personal gaurentor….. I have been with multi millionaires at business bank “new funding” meetings and they still ask the same commitment but the lending is at the 10-20 million mark!… so don’t feel it is a personal thing :o)
[biggrin]What is it they say?
“Banks and Insurance companies never Lose!”
Cheers
KiwiI have done a few non recourse loans with Unit Trusts but these tend to be lower LVR’s 65/70% and more often on leased commercial security.
Hate to say without your guarantee they will not proceed.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Many thanks to all of your responses, it is what I thought would be the case.
Cheers Greg
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