Guarantor for Corporate trustee loan

[cw318]

Hi,

If a property was purchased under a family trust with a corporate trustee where my partner and I are directors:

When taking out the loan as ABC Pty Ltd ATF ABC Trust the bank has asked that both of us be personal guarantors for the loan.

My question is, as guarantors for a corporate trustee is it usually a guarantee for the entire amount of the loan or just an amount over a certain percentage of LVR?

Thanks for your help!

 

[Peter_Tersteeg]

You'll need to guarantee the entire loan.

It's likely that you'll have to supply the same information as if you're applying for the loan personally.

 

[Marty McDonald]

What sort of guarantees would you want if you were lending the money to someone you didnt know?

 

[Terryw]

That is why you should not have 2 directors of a company = double the risk.