From Mr Ed which may be of interest to those with a HDT
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If you own a Hybrid Discretionary Trust, you’d be fully aware of the attention the ATO has been giving them in recent years. Well now it’s the lenders turn too, and they have lost their appetite for them to the point there are now only three banks that will accept a property held in a Hybrid Trust as security. If you do not meet these three lenders servicing criteria then you may have to sell. Simple things like recasting your interest only period back out to ten years before it goes to Principal and Interest, or increasing the loan, in either a top up or equity release will most likely result in a no from credit unless you’re using one of the last three funders.
The days of the HDT could be over…
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This is serious stuff, if you have property in a HDT, it’s quite conceivable that in a few years time you may not be able to access residential funding at all.