To the brokers - Change of Trustee: Personal to Company

Hi guys, just spoke to my solicitor about changing trustee and she told me the first step was to speak to my lender to make sure the "consent" process was easy enough. Unfortunately given the lender is a Homeside, I found out after a 25 minute conversation, that I need to do it through my broker.

Before I engage my broker to undertake this, I am hoping to understand the process a bit better from someone who has done this before. Is this a "simple" process, or will I need to do a full variation/refinance application for the loans?

Thanks in advance
 
Generally a new loan application for many lenders

trustee change means the mortgagor changes and different guarantees are required etc

not a simple name change per se

ta

rolf
 
I agree full loan application with change in ownership. Old mortgage must be discharged and new mortgage and loan agreement entered into with personal guarantees from directors. Re assessment of serviceability too.

Changing trustees is generally not a CGT event but can result in stamp duty in some states such as NSW if the trustee is a beneficiary - depends on the wording of the deed.
 
From a loans perspective- yes it's a whole new app + will reassess the deal again ( most lenders will do this, not just homeside)

From a CGT/ tax and Stamp duty perspective - im not a lawyer or accountant but i had 2 clients do exactly this and both were charged CGT and Stamp duty- One property was in NSW and the other in QLD. Speak to your account and lawyer first.
 
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