OUR SERVICES / Trust Loans
Navigate the intricacies of acquiring a home loan through a trust with the help of an experienced mortgage broker for trust loans.
As a knowledgeable finance broker for trusts, utilising trust loans is a core part of our business. The benefits of a trust vary depending on the circumstances, but the key reasons are generally:
We have a whole article about purchasing in trusts, including a 45-minute video to explain it in detail.
Here’s an overview of the trusts we deal with for lending (we deal with SMSF and bare trusts too, but that’s on a different page):
This is by far the most common structure we see for lending. They are often referred to as a family trust, but technically not the same thing. Discretionary trusts give the trustee the ability to distribute the profits between the beneficiaries. Important factors for lending:
Another option is taking out a mortgage with a unit trust. These are generally used for a joint venture where a trust makes more sense than a company,often because a unit trust can have the CGT concession applied if the unit holder is an individual. This structure will let you split the profits per the units (which act much like shares in a company do) – in other words, with no discretion. They’re generally less flexible than discretionary trusts, but help you avoid any disputes later.
Otherwise, the same lending guidelines generally apply as with a discretionary trust; but, we’ll reiterate that trying to make a pseudo-hybrid-trust (in this case, by adding a discretionary trust as a unit holder) will make your lending more difficult.
Hybrid trust home loans definitely have a place in investing under the right circumstances, as they’re a combination of a discretionary and unit trust. However, most of the key lenders do not accept them.
The limitations on lending mean they’re not recommended unless absolutely needed for your circumstances or if you’re happy with higher rates.
We understand the concepts behind trusts and how to use them effectively:
Trusts aren’t for everyone. Purchasing under your personal name is much simpler, and companies have a place in certain circumstances. But if you think you’d like to look at investing through a trust, Blue Fox Finance is here to help. As experienced mortgage brokers for trust loans, we have the expertise to help get you a home loan in your preferred structure.
