Lenders with flexible policy around guarantors for trust loans

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Jackson
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Joined: Mon May 13, 2019 4:13 pm

Lenders with flexible policy around guarantors for trust loans

Postby Jackson » Mon May 13, 2019 4:14 pm

Hi, I’m the trustee for our family trust, my three siblings are all beneficiaries in the trust. I’m looking to buy an investment property. Our bank ANZ knocked us back saying they require all the beneficiaries to be guarantors. One of our beneficiaries is always travelling abroad for extended periods of time and has refused to do it outright. Are there lenders with flexible policy around guarantors for trust loans?

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Otto Dargan
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Re: Lenders with flexible policy around guarantors for trust loans

Postby Otto Dargan » Mon May 13, 2019 4:35 pm

Hello Jackson. Welcome to the forums.

Most lenders require all adult beneficiaries in a family trust to be guarantors for the loan. They would all need to provide income, asset & liability information as well as meet other borrowing criteria.
Luckily, not every lender requires beneficiaries to be guarantors.

We can help you by looking at your entire situation and finding the right lender that will lend to you:
  • We know which lenders can accept family trust loans without the need for all beneficiaries to be guarantors.
  • We can get your loan approved with lenders that have fewer fees for guarantee and indemnity documents.
  • We know how to structure loans with the correct entities as borrowers and mortgagors. We’ll even discuss this with your accountant to be 100% sure.
  • For the majority of family trust loans, our services are completely free.

We are specialists in trust loans.

Speak with one of our specialist mortgage brokers by giving us a call on 1300 889 743 or fill in our free assessment form to find a lender that will approve your loan and offer the most competitive interest rate around.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jackson
Posts: 3
Joined: Mon May 13, 2019 4:13 pm

Re: Lenders with flexible policy around guarantors for trust loans

Postby Jackson » Mon May 13, 2019 5:29 pm

I want to diversify the portfolio of our trust and I’ve found a suitable investment property. I’ll be liquidating some of our lower performing ETFs and use that towards the deposit for the investment property. What’s the maximum LVR we can borrow using a family trust?

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Otto Dargan
Mortgage Specialist
Posts: 7538
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Lenders with flexible policy around guarantors for trust loans

Postby Otto Dargan » Mon May 13, 2019 5:57 pm

Hi Jackson,

With a family trust, the amount you can borrow depends on the loan product that you require:
Please note that some lenders have restrictions on lending to family trusts with a company as the trustee, they prefer a personal trustee.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jackson
Posts: 3
Joined: Mon May 13, 2019 4:13 pm

Re: Lenders with flexible policy around guarantors for trust loans

Postby Jackson » Mon May 13, 2019 7:55 pm

That’s doable. What additional charges am I liable for when applying for trust loans? Are the rates higher?

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Otto Dargan
Mortgage Specialist
Posts: 7538
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Lenders with flexible policy around guarantors for trust loans

Postby Otto Dargan » Mon May 13, 2019 8:25 pm

Hi Jackson,

Yes, all lenders charge additional fees for lending money to trusts.
This is to be expected as there’s additional work to be completed in preparing the guarantee and indemnity documents for the trustee and the beneficiaries (if applicable) to sign. In most cases, the additional legal fees charged by banks are between $200 and $500.

We have almost 40 lenders on our panel so we know lenders with lower fees and the most competitive rates for trust loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a trust home loan.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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