Typically, when lenders receive a trust loan application they will carry out a full credit assessment to decide if they should approve the trust loan. They tend to look for:
The trust credit file: The directors and beneficiaries of a trust have credit files and, in some cases, trusts have a credit file as well. Lenders check the file for applications to other banks and any blemishes that it may or may not have.
The trust deed: The deed is checked to confirm the beneficiaries and the trustee of the trust and to make sure that the trustee has the power to apply for loans for the trust.
The loan structure: Many people take advantage of negative gearing benefits by choosing to have the loan in the name of the trustee or the director of the trustee rather than in the name of the trust.
The beneficiaries: Most trusts are set up with more than one beneficiary, and this can make it difficult to borrow money for them as some lenders require all adult beneficiaries to be guarantors. In your case, as the sole beneficiary, this shouldn’t be an issue.
We are specialists in trust loans.
Speak with one of our experienced mortgage brokers by calling us on 1300 889 743 or fill in our free assessment form so we can help you get approved for a trust property loan.