90% + LMI capitalised?

[The Chaser]

There is another variable for tight LMI deals..........existing exposure with that insurer.............

All our exposure is currently with QBE as the insurer, but this is all in hubby's name. I don't currently have any debt in my name apart from our credit card. The card is paid in full every month and we have never paid a cent of interest.

I guess with the DFT it would depend on whether hubby is a director as to whether existing exposure is an issue?

 

[Rolf Latham]

Hi Angela

Without knowing the detail its hard to give much specific advice......

If Hubby is the director of the trustee ( or co director) that will give u the most spread of availables.

if your core issues is asset protection and we need YOU as the director of the trustee it may get messier, but probably not impossible

ta
rolf

 

[PHF]

Is it possible to take out the loan in your own names but hold the property in trust?

 

[Rolf Latham]

Hi PHF

yes, not hard , but some lenders and mortgage insurers wont like it, because they see it as a third party guarantee,that is the the trust gets no derived direct benefit from the loan to the trustees.

Technically of course thats not true so we need to convince the lenders of the beneficial interest of such a thing

ta
rolf

 

[VIC Lender]

Is it possible to take out the loan in your own names but hold the property in trust?

There are problems with this structure.

1. Money lent to a family trust is not always deductible (can be a very expensive mistake).
2. Balance sheet of the trust will show that the trust owes you $xxx. That means if you get sued the money that the trust owes you can be assigned by the courts to someone you personally owe money (lose your asset protection).

Generally the best option when you buy in a trust is to borrow 100% plus costs in the trust.

What you are proposing is a common and expensive mistake.