Hey guys new to here but it seems a great place to help answer all those questions
Are banks/credit unions as acceptable in lending to an individual to purchase units in a trust to invest in property than they would be if the property was owned in the individuals name? Like can the bank still have a mortgage on the property in the trust for the individual borrower? Just wondering how difficult it is to get finance for this situation.
thanks for any help anyone can give me
Hi Dave
It is a good question you raise and the simple answer is Yes / No.
Many lenders have a real problem especially when it comes to HDT’s however seem more comfortable with a DT.
Thankfully the market is a big place and we can cater for full doc / lodoc and no doc loans to Trusts at extremely competitive rates and packages.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Originally posted by DaveA:Hey guys new to here but it seems a great place to help answer all those questions
Are banks/credit unions as acceptable in lending to an individual to purchase units in a trust to invest in property than they would be if the property was owned in the individuals name? Like can the bank still have a mortgage on the property in the trust for the individual borrower? Just wondering how difficult it is to get finance for this situation.
thanks for any help anyone can give me
It depends who the trustee is. If the person borrowing the funds is trustee, then I think most lenders don’t have a problem with it. If a company is trustee and the loan needs to be in the name of an individual, then it gets more complicated and not many will do it.
Terryw
Discover Home Loans
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richard, as for someone who is quite new to this, what would you say as being a compeditive rate for say 500k (for 2 propertys) as trustee being the borrower (with the normal terms)? Would it be around the 7.1% or maybe a little higher?
Thanks
Hi Dave
Considering the Standard Housing rate is 8.07% i thik you would be looking at more like 7.35 – 7.50%.
Just make sure you dont let the lender X collaralise those loans. If you have a loan of $500 spread over 2 properties you need to make sure you structure it correctly.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
so for the nieve question, but how would u structure those loans correctly, do u basically mean have 2 seperate loans for each property??
would that quoted rate be like a fixed or variable rate?? and what would be the comaprisions to a normal simple structured rate?? So im pretty new to this so just trying to beef up my knowledge…
Dave
Without the full knowledge of your own position it is diffcult to advise you accurately but yes i prefer to have the 2 loans on each security total separate and not crossed.
Depending on equity amounts and the LVR this is not always possible but certainly if you wish to go forward with your investing is almost a MUST.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
hmmm ok
see my situation is unusal, i wont be investing for about 12 months or so but im just gathering information and building up my knowledge so general advice would be just fine…
why would it be better for future investors to have seperate loans, is this so when you decide to sell one everything is still structured the same? and say if u invest with more than 80% then u only have the pay the mortgage insurance once?
If im getting into to technical things thats fine but yeah im really only looking for guidence at the moment
cheers
Yes ideally you would keep them as separate loans.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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