Financing using trust structure

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calypso310
Participant
@calypso310
Join Date: 2006
Post Count: 1
July 13, 2006 - 8:39 am
Hi all,
After learning the Wealth Guardian product from Steve, which is a great resource, i have now sourced a property.
In sourcing finance, when asking the mortage broker at a well known bank about lending to a trust structure, he mentioned that it would be classed as a commercial loan, which requires higher deposit percentage and also incurs a higher interest rate as compared to buying personally in my own name.
Has anyone else encountered this problem? I shall shop around using an independent mortage broker to see what he finds.
Anyone encountered similar things?
Cheers,
Calvin
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 13, 2006 - 1:49 pm
Must have been Westpac?
Most banks treat trusts the same as individuals, with the same conditions and residential rates, and you should not have a problem.
Terryw
Discover Home Loans
Parramatta
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Mobile Mortgage
Member
@mobile-mortgage
Join Date: 2003
Post Count: 913
July 14, 2006 - 12:04 am
Terry is correct,
Normal residential lending rates and loan to value ratios will apply, providing the security is not classed as a commercial property.
Contact Terry, he’s in NSW and will be able to help you.
Cheers
Steven
Mortgage Broker
Mobile Mortgage Market
Ph: 0402 483 216
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http://www.mobilemortgagemarket.com.au
PLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
July 14, 2006 - 12:12 am
Guys not only Westpac.
Had clients last week who had been with Bank of Q for years and were buying in a Pty Ltd ATF XYZ Trust and they wanted to do the same. Also CBA told another client they would be unable to assist as the Trust did not have 2 years Tax Returns.
I must admit i love the lack of education in these Banks they make life so much easier.
Cheers
Richard Taylor
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