ANZ Loan Structure help please!

[Rolf Latham]

I don't think it's likely that we will change the directors of the corp trustee, it's only my husband and I and even if that were to go south, we would remain directors to administor the trust for our kids so I also think the guarantee is probably the best way to go for these loans

Agreed, makes sense,

The other issue is that a fixed and float can be like a Tattoo.

Subsequent lenders may not want to play ball behind a lender that already has a FFC and/or RMD

Really getting into sticky realms of cashflow and business lending here, but invariably MANY lenders will try it on for a normal resi or slightly light commercial deal.

Folks, read your loan offers, contracts and docs carefully.............

ta
rolf

 

[Aaron_C]

Well said rolf. Asset protection sounds good in theory but banks are not stupid.

 

[Terryw]

I don't think it's likely that we will change the directors of the corp trustee, it's only my husband and I and even if that were to go south, we would remain directors to administor the trust for our kids so I also think the guarantee is probably the best way to go for these loans

By having 2 directors of the trustee company you are really doubling the risk and needlessly giving a a guarantee by each of you. There may be other reasons to have 2 directors - such as control, but this may not be an issue for spouses.

Rolf, I beleive the Corporations Act has now been amended with removal of the fixed and floating charge. This has now been incorporated into the new Personal Property Security Act (PPS Act). There is new terminology and it is different than before - but I don't know the details of how it has changed.

 

[Peter_Tersteeg]

Hmmm I suspected as much. Not a lot of faith in broker as a result...what to do now????

You could look at the ANZs basic loan. I'm pretty sure you can get the same 0.8% discount, no ongoing fees. The downside is you'll pay an application fee instead and there's no offset account available (which shouldn't be a problem for a discressionary trust).

There are a few other good deals out there, possible better than the 0.8% discount which would also be available to discressionary trusts.

 

[jclegg]

You could look at the ANZs basic loan. I'm pretty sure you can get the same 0.8% discount, no ongoing fees. The downside is you'll pay an application fee instead and there's no offset account available (which shouldn't be a problem for a discressionary trust).

There are a few other good deals out there, possible better than the 0.8% discount which would also be available to discressionary trusts.

The deal our broker got from ANZ is for the 0.8 discount but an annual fee of $150 for each of the 2 loans so still $300pa for a combined 350K. I'm still looking outside the banks. (I would like to stick with the banks but I'm also thinking I should split up our personal asset loan with the trust loans )

 

[Rolf Latham]

(I would like to stick with the banks but I'm also thinking I should split up our personal asset loan with the trust loans )

now there is an idea if any of your ideas for trusts relate around asset protection

On the fees.........dont loose the focus of what yiu are looking to do here, look beyond the immediacy of a few hundred bucks vs future flex ( assuming there is some ).


ta
rolf

 

[jclegg]

now there is an idea if any of your ideas for trusts relate around asset protection

On the fees.........dont loose the focus of what yiu are looking to do here, look beyond the immediacy of a few hundred bucks vs future flex ( assuming there is some ).


ta
rolf

Thanks for the advice rolf, this is a minefield

 

[Rolf Latham]

Thanks for the advice rolf, this is a minefield

so find someone to follow .............at a distance



much less chance of something going wrong

ta
rolf