A loan for a trust

[Dis]

Its been ages since I posted here. Nice to see some old timers still giving great information!

We have a family trust and want to use a loan to buy some investment(s). The first investment is a part share in a commercial property.

We would like to use the equity in properties held in personal names as security for this. Is this possible? What financial institutions allow this?

I have a residential IP which I can use for this purpose (it currently has a loan with CBA but has free equity). My wife has an unemcumbered residential IP which she can use also.

We prefer not to secure the loan to the commercial property because it will be owned by 3 unrelated parties and we see the loan process as messy - joint and several liability, etc.

Thanks in advance.

 

[Evachange]

There are a number of lenders that should be able to do this, its just third party security.

Hope this helps.

 

[Peter_Tersteeg]

This sounds fairly straight forward. I don't imagine the trust is a problem if you do need to use the commercial property as security.

If you're purchasing a share in conjunction with others, it might be easiest to use equity in one of your IPs for the lending and then pay cash. You may also want to consider if a family trust is the most appropriate structure to purchase in. A unit trust may be worth investigating (it could depend on who your investing with).

Overall it doesn't sound too difficult, but more specific info on the who deal would be needed to come up with a specific solution.