Loan for a Hybrid trust?

[Nominees]

Hi,

Does anyone know of a bank that understands how a hybrid trust works.

I would like to get a Westpac premier advantage package, but my local loans officer doesn't understand how it all works.

Has anyone had success with with Westpac?

I would like to get a LOC at 6%, and be able to buy property interstate. Just need someone that understands the game and will play along with me (so to speak).

Any recommendations?

Thanks.

 

[Rolf Latham]

Hiya

Yes WeSuck will do hybrids.

Must be a nice 500 k + lend then for the 6 % rate

As you have experienced though most bankies and for that matter most credit assessors find them all too hard, its a shame becaue really its not rocket science.

When I have placed scenario analysis in the early days of these tax effective structures becoming more popular, many lenders will gave an initial NO WAY, because they could not take them time to understand them. The off the record answer is along the lines of we have enough "easy" business for our guys to write, most of our people do not have the experience for the fancy strcutures.

Find yourself a good independent broker. While it still wont be a snack because many wont look at you for the above reasons, persist, it will be worth the effort.

Ta

rolf

 

[StevenO]

Nominees,

I can recommend a great broker who has recently arranged a loan with Westpac for my Hybrid Trust.

His name is very similar to that of the last poster!

 

[perky29]

Hi Nominees,
Westpac (a couple of months ago) accepted a loan for me under the Hybrid Trust that Dales office set up for me.
But be prepared for a long settlement time (maybe shorter now I have tested the waters, their Business Banking section may now actually understand what is going on).
At one point they said that their legal section would need to check it out (at an extra cost of of $1200 and another week or two delay) - but we managed to get around that - the bank then asked for a Commercial benefit letter from a solicitor (Sharon , Dales associate) used a nearby solicitor to write this up for me for around $130 and the bank was happy with that. That bit (CBL) has now been mentioned in Dales latest Trusts book!!!.

 

[Rolf Latham]

Hiya Perky

If one has a corp trustee I would not recommend Westpac.

As you have found they assess Corp deals in a diff area than the normal resi stuff. (Syd vs Adel)

Its because of this that there is great inconsistency as to how things are handled.

Generally, STG and Bankwest provide more consistent treatment in that they consider the P/L trustee as transparent whereas Westpac do not, NAB is similar.



Ta

rolf

 

[perky29]

Hi Rolf,
I know what you mean. With Westpac , papers going back and forward did delay the process.
I had problems with Bankwest, they took 3 weeks just to look at my last wrap - and then declined it because I had another wrap going through with AXA (not under the trust as they will not accept it) at the time, a month before. I lost the property, so will not be going back to them in a hurry (shame , because it was a 5% deposit).

 

[sunnywan]

Originally posted by Nominees


Does anyone know of a bank that understands how a hybrid trust works.

I've gone through the ANZ bank (through their Premier Select package) when applying for a loan for my Hybrid. As previously mentioned, be prepared for a long wait, as they check through your trust deeds, etc.

 

[Rolf Latham]

Hi Sunny

Obviously your trust has a pers trustee since they wont do PA for Corp trustee usually

Ta

rolf

 

[sunnywan]

Originally posted by Rolf Latham
Hi Sunny

Obviously your trust has a pers trustee since they wont do PA for Corp trustee usually

Ta

rolf

Actually it was a corporate trustee - I am the sole director.

 

[bundy1964]

It also pays to have access to cheap/free photocopies of the trust document as I have been told by others that every man and his dog wants a copy when loan time comes around

bundy

 

[Nominees]

Hi everyone!

Thanks for the posts.

I have now found out that you only need to use the company name when signing the contract, (and that the title deed will only have the company name too.) (See my post in the "legals" section.)

This is true for me anyway, since all my documents only have the company name on them (it is up to me and my lawyer to know which propty belongs to which trust.)

So I am wondering whether the banks really need to know about the trusts!!!

Just let them see the company and that is it.

Since the "company" has already purchased the block of land, I thought this would be straight forward.
I simply want the bank to use the land as securityand lend "ME" the mony (NOT the company) based on "MY" income.
(Simply put the company would be a guarantor.) (BTW I am the sole director of the company.)

Any thoughts on this...
Thanks,

Nominees

 

[Rolf Latham]

Hi Nominees

I would advise you dont go down this track.

Simply, not disclosing the true controlling entity effectively means you are in breach of your loan contract and thereby in default.

Dont go there, its not worth the stress long term.


Ta

rolf

 

[klk]

Just wondering if it's possible to borrow the
funds in your own name & then on lend it to the trust

Kim

 

[sunnywan]

Originally posted by klk
Just wondering if it's possible to borrow the
funds in your own name & then on lend it to the trust

Kim

This is how we usually do it when dealing with Hybrids. The bank will take the property that the trust buys as security, but the loan applicant is the person themselves, not the trust.