Hi Adam unless the family trust is able to service the debt itself, income from the trustee is utilized. I'd need to look at your current circumstances and Trust to ascertain the best way to fulfilling your requirements and objectives. Click on my profile to progress your enquiry, thanks.
Interesting. I read an article on another website written by Atul, Founder of Hasching stating: "Fortunately, some lenders are more flexible and mortgage brokers at HashChing can get you in touch with lenders who provide trust loans at competitive rates without requiring any guarantors."...Do you know what this means?
Hi Adam, you can certainly have mutliple trusts, and they would all be guaranteed by you. But it doesn't magnify your borrowing power by creating new entities. I.e if it's not possible to borrow for two or three mortgages with one wage, creating a trust won't change that. In the end your wage and rental income need to cover assessed mortgage repayaments, living expenses and any other debts/payments. If you'd like to send through some numbers I can run some calculations for you.
I was under the impression that you could have multiple trusts guaranteed by the same wage? I was aiming to put my current mortgage under my wife's name and guarantee that with my wage - and do the same for an investment property. Is that not possible?
Hi Adam, thanks for your question. Yes you will have to guarantee the loan. Borrowing through a company or trust just changes the borrower and title holder, but in terms of serviceability the lenders will look at it as if you are borrowing in your own names and look at your wages and rental income as well as your expenses and liabilities. Get in touch through my profile if you'd like me to explore options for you. Thanks, Alex
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Alex
Hi Adam, it's hard to know exactly what Atul is referring to, but no lenders in the residential space in Australia provide loans to trusts without guarantors. He may be referring to a security guarantor, in that the trust can secure the loan with the subject property and not rely on a guarantee or mortgage over another property. Nonetheless, even if there were no guarantors, there would have to sufficient rental income to cover the assessed mortgage repayments (generally assessed at around 7.5% over 30 years), which would be unlikely unless you had a large deposit and very low loan to value ratio.