Before you open a family trust, our brokers can help you check if your eligible for a loan, max servicing and ways to improve your file and borrowing.
There are many different types of trust and there are some banks don’t accept.
The main trust banks may accept are
- Family trust
- Discretionary trust
- Unit trust
- Company trust
- Special purpose trust
Most banks don’t accept hybrid trust, however under certain conditions they may accept as an exception.
There are many reasons why a borrower would buy under a trust examples are asset protection, increase servicing, tax reasons and family planning.
Advantages of buying under a trust
- Can be used to buy residential and commercial properties
- In certain situation it may not impact your personal borrowing capacity
- Depending on the purchase and property type, it may have a tax advantage
- You have control on the asset and investment you want to invest in
- Asset protection
- May have a tax advantage
- Same interest rate
- Construction loans are available
Disadvantages of buying under a trust
- Set up cost and ongoing cost
- Limited choice of lenders
- Some bank may not offer an offset account.
- Bank does not accept negative gearing.
Please seek independent legal and accounting advice.
Our brokers personally have multiple properties under their Family trust and understand the complexities and struggle of buying in a trust, but rest assured we will guide you throughout each step.