question for finance experts

You are talking AFTER the GFC now JPcashflow,

Ready credit is still dealt out based on MUCH higher standards than was applicable before the credit squeeze.

90% is quite attainable, 95% for most people barring an extremely good and ongoing credit history is very much an uphill struggle.

Most people think its all quietened down and its back to business. Its not. Its still very much that the banks are handing out money to very good clients and very reasonable risks. And anything that smirks of greater risk is now almost frowned upon. They tend to be doling out for 'more security' if they feel you are any slightest aspect of a risk component. Especially the banks. I have been with one conservative bank (for discretionary purposes its left un-named) as a regular client for just on 28 years. And despite my large asset backing and my sizeable cashflows and giving them reasonable security … they came back to me on a recent deal and asked for significantly more security. I told them where to go.

Setting up a trust at this stage? Too early and an unnecessary expense. You forfeit the tax benefits of direct ownership which means you'll be paying a higher bracket of tax on any earning you get through the trust .. and you cant offset earned  income directly against your income properly. YES a trust is a great idea .. but you are cutting off your toes and telling yourself the shoes still fit. The tax offsets available to direct ownership rather than a trust far outweigh the initial benefits of having it in a trust structure.

Investigate it further. There IS a place for a trust .. and there will be a reason for setting one up. You've got to learn WHY .. and then when. But at this stage you'll be cramping your income into a taxable box and getting it taxed at a much higher rate. Which stops you from getting to where you want to .. as fast as possible.

You would want to keep your cash for your non-deduction debt usually. Probably a good way to proceed would be to lend money to your trust by borrowing it from a LOC secured on your main residence at the same rate you are being charged. Any less would cause tax issues.

If the trust does go down then you as the lender will probably only lose the money lent and not your house. if you let the trust use the house as security then it would be more risky.