Sydney mortgage broker specialising in trusts

[misschilli]

Hi all,

I am looking to purchase IP1 under a trust structure (considering a unit trust or a hybrid trust). I was wondering if anyone can recommend a mortgage broker based in Sydney that has experience in obtaining finance for trusts.

Thanks in advance

 

[Aaron_C]

Financing for trusts isn't that difficult to normal unless it is a hybrid trust.

 

[Shahin_Afarin]

It really depends on the type of trust - most lenders will accept most trusts however your options are limited when it comes to HDT's.

Here is my order of lender preference for HDT's:

1. Suncorp
2. NAB
3. Westpac

Also note that some lenders will charge extra fees for processing Trust Applications.

Is the Trustee Personal or Company?

Regards

Shahin

 

[D.T.]

Financing for trusts isn't that difficult to normal unless it is a hybrid trust.

for a DT does it make much difference on whether theres a human or corporate trustee?

 

[Aaron_C]

for a DT does it make much difference on whether theres a human or corporate trustee?

Not from a bank's perspective.

 

[Shahin_Afarin]

It does make a big difference for HDT's. BTW forget about doing over 80% for HDT.

Regards

Shahin

 

[Rolf Latham]

It does make a big difference for HDT's. BTW forget about doing over 80% for HDT.

Regards

Shahin

95 %/90 % is still possible with St George, and can be sold to others on case by case depending.

But be aware that Dragon drags the chain on these like on many deals.

ta
rolf

 

[Rolf Latham]

Not from a bank's perspective.

product and access wise it does a little.

Some lenders like wbcare yuck for Corps but ok via personals coz business goes through concord, and personals through Lockley's

ta
rolf

 

[Rolf Latham]

Hi all,

I am looking to purchase IP1 under a trust structure (considering a unit trust or a hybrid trust). I was wondering if anyone can recommend a mortgage broker based in Sydney that has experience in obtaining finance for trusts.

Thanks in advance

Pete T isnt based in Sydney but is a TWUST GUWU : )

ta
rolf

 

[Terry_w]

I am a sydney based mortgage broker and solicitor specialising in trusts and structures. Virtually all the legal work I do is related to structures.

Getting the loan is the easy part. It is the structuring and set up of the loan that is important. Recently I have seen a few clients who have their structures set up inefficiently and this is effecting borrowing capacity. one simple example is husband owns 99% and wife owns 1% of a property.

Another common one is including the non working spouse as director of the trustee company. This greatly reduces asset protection and also unnecessarily reduces borrowing capacity.

 

[Peter_Tersteeg]

for a DT does it make much difference on whether theres a human or corporate trustee?

I agree with others, no issue from the banks perspective, in some cases it makes the deal easier.

However whilst I'm not a lawyer or accountant but I would very much advise using a corporate trustee. I believe there have been rulings (either the ATO or the courts, not sure which) where the trustee, appointor and primary beneficiaries were all the same person(s). In this scenario the ruling was basically that the trust does not exist.

It effectively neutralises the potential tax and asset protection benefits of the trust, but you still have the costs associated with maintaing the trust. I'm willing to be the ATO would still recognise the trust for negative gearing though, so you don't get that small advantage.

A Discressionary or Hybrid trust is effectively useless without a corporate trustee.

 

[Terry_w]

I agree with others, no issue from the banks perspective, in some cases it makes the deal easier.

However whilst I'm not a lawyer or accountant but I would very much advise using a corporate trustee. I believe there have been rulings (either the ATO or the courts, not sure which) where the trustee, appointor and primary beneficiaries were all the same person(s). In this scenario the ruling was basically that the trust does not exist.

It effectively neutralises the potential tax and asset protection benefits of the trust, but you still have the costs associated with maintaing the trust. I'm willing to be the ATO would still recognise the trust for negative gearing though, so you don't get that small advantage.

A Discressionary or Hybrid trust is effectively useless without a corporate trustee.

Peter,

This is completely incorrect.

I would be interested in reading or knowing of any of those rulings which say a trust never existed.

The reason why a company is recommend as trustee is because if a trust is sued it is the trustee that gets the judgment against them. They are personally liable for the debt but have a right to be reimbursed out of the trust assets. If the trust assets are not enough to satisfy the judgment then the assets of the trustee are at risk.

A discretioanry or hybrid is not useless without a company as trustee. There are sound reasons why a trust can have a person as trustee. Look at Gina Reinhart's recent issues, it looks like she is personal trustee.

 

[Aaron_C]

A discretioanry or hybrid is not useless without a company as trustee. There are sound reasons why a trust can have a person as trustee. Look at Gina Reinhart's recent issues, it looks like she is personal trustee.

Was this is a sound decision or a mistake?

 

[Terry_w]

Was this is a sound decision or a mistake?

I think it was perhaps not a sound decision!

 

[misschilli]

Terry, I was planning to come and see you at some stage about setting up a trust, didn't realise that you were a mortgage broker as well! That makes things easier!

Some sort of HDT would be ideal as both asset protection and the negative gearing aspects of it are important for me, I was just worried about obtaining finance for it.

 

[Shahin_Afarin]

95 %/90 % is still possible with St George, and can be sold to others on case by case depending.

But be aware that Dragon drags the chain on these like on many deals.

ta
rolf

95% used to be possible - only 90% is technically possible now but in reality their appetite is only 80%.

Regards

Shahin

 

[Aaron_C]

I was just worried about obtaining finance for it.

Then why make it harder for yourself? Make money first.

 

[Aaron_C]

95% used to be possible - only 90% is technically possible now but in reality their appetite is only 80%.

All STG want is non-resident stuff. Lower rate of default.

 

[Shahin_Afarin]

Can't forget SMSF.

Regards

Shahin

 

[Rolf Latham]

All STG want is non-resident stuff. Lower rate of default.

and non gen ( rental replacement) 97 % capped IO FHOG buyers

none of this good quailty 70 % lvr investor rubbish.

ta

rolf