Experienced broker for HDT borrow in personal name

[Jasmine]

Hi, we have set up a HDT with a company as the trustee for property investment purpose. We are looking for a loan in order to purchase an IP in the HDT in the near future. Our accountant told us that we have to borrow under our personal names for the property to be purchased in HDT. We had already contacted few brokers recently, but none of them can help us since they are not familiar with this structure. Can any one here recommend any mortgage broker in Melbourne to help us to get the loan for our IP? Or some of you guys here can help us? I know some of you are mortgage brokers. We really need a person with experience in this kinds of loan before and prefer he/she also has knowledge in property investment so he/she can give us best advice for our situation. Welcome to post here or give me a message. Thank you very much in advance. By the way, while recommending, please also let me know whether the broker is charging a fee or free of service.

 

[Kristine..]

Hi Jasmine

Doing something very similar at the moment - much ringing around and the lenders which would have readily done this six months ago have virtually stopped accepting guarantor situations at all

However I have one lender which will do the deal I am working on but this lender is notoriously funny regarding the actual structure of the trust

Assuming that your are the Directors of the Company which acts as Trustee for the Trust, and are the only Adult Beneficiaries of the Trust, this lender may do it.

Please confirm if you are looking at full doc or low doc

Does the Company do anything else except act as Trustee for the Trust?

Cheers
Kristine

 

[Rolf Latham]

Hiya

Pete T in Melb is quite Familar with HDTs.

There are a few mainstream lenders ( still) that will do the correct structure, Inlc NAB direct, Heritage Building Society, AMP and a few others that may require a bodgy work around.

Depending on the day of the week, you might sneak one past CBA.

Also depends what "brand" of HDT deed you have. Some allow a back end "on loan" agreement

ta
rolf

 

[bawatkins]

Got one going at the moment, needs to be full doc and depends on trust deed wording and who are beneficiaries but still possible. As mentioned by Rolf, AMP, NAB, maybe St George will look at, max LVR really is 80%

Barry.

 

[Qlds007]

Must admit i find it hard to believe NAB will do it.

Went to a NAB breakfast this morning and it was bought up as a big NO NO.

Rams are always happy to look at HDT's but we prefer Heritage / The Dragon.

 

[Jasmine]

Thanks for all above prompt replies. Answering all of your questions below:
- the trust we use is C & N's PIT
- The company only act as the trustee for the trust, nothing else
- Directors of the company are my husband and I
- Beneficiaries are our family members
- Should be full doc since both of us are employees of some companies for years.

Hope it helps. Any recommendation?
Thanks again in advance.

 

[Qlds007]

As has been mentioned why not give Pete T or Kristine a call as both are a short 3 iron distance from you in Melbourne.

 

[Rolf Latham]

Hiya

With the PIT you can do a back end on loan agreement which means you can have the loan in the trust name, which adds quite a few lenders

ta
rolf

 

[lizzie]

a couple of things i want to ask. is there a real reason why you "have" to buy in an HDT? we are currently unwinding ours because of several reasons:

financing is difficult due to ato indecisiveness
ato indecisive and lack of rulings that can have adverse future affect
no land tax threshold
high costs to maintain (acct, asic etc)
no financial advantage over owning in hubby's personal name

regardless - the structure is that the unit holder-to-be takes out the loan in their own name and purchases units in the trust, which the trust uses to buy the property, the bank takes security over the property.

i am assuming you understand how the trust actually works financially.