All Topics / Finance / Interest Rates for trust setups
Hello,
Does anyone know the going interest rates for borrowings for a trust setup in the name of a trustee company?
I know it's more than standard rates (ie held in own name), but i'm paying 6.5% currently and wanted to know what my new property would be looking at?
Thanks
More??? who says….
Family trust, unit trust, discretionary trust – at the same discounted rate as personal borrowers 6.4% etc…
Hybrid trust – Depends how it’s set up and how complex
SMSF – Normally changed at the SVR with no discounting ; but some lenders do provide some discounting
Property Unit trust – Depends how it’s set up and how complexHaving a corporate/company trustee is fine.
Question is; what sort of trust do you have and how complex is the set up?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hello, It’s just a discretionary trust with a trustee company. Current lender is Cba so was hoping they were ok with this. It’s my first purchase in the trust so I’m still learning the ins and outs.
CBA may not have a clue so good luck.
Just make sure that whoever you use sets it up correctly as it can be an expensive mistake if not done so.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I am with CBA with corporate trustee. Rate = same as my personal discounted rate. Might depend on the venture you are trying to fund, ie developments etc ‘may’ fall into business lending which will have a different rate.
It was challenging to get it all set up, but I went through a broker so wasn’t really my challenge, I just heard all the stories along the way.
Westpac didn’t want to play ball at the time (some 18mths ago)
Regards-Eamon
Even now Wesuck will probably find it hard to grasp the DFT concept.
You have to understand that lending to Trust structures forms a very small part of a lenders overall loan book so like if it is too hard the easy answer is No we dont do it or Yes we do it but the rate is XYZ above our standard rate or the applic fee is now ABC.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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