When you establish a trust, you need to take advice of your accountant and solicitor. In the same way, you must take help of an expert finance broker in availing trust loans. He/she will help you in choosing the right loan for your trust.
A trust structure is popular because it provides advantages like asset protection and tax minimisation. So, many people opt for it. If you want to establish a trust, you must first speak to your accountant and solicitor to take advice regarding the structure of the trust including legal and tax implications. Whether you choose a discretionary, family, unit or a hybrid trust, your accountant or solicitor will be able to guide you in the right direction.
You must remember that different types of trust structures are assessed by a lender/credit provider in different ways, for example:
>> Some lenders/credit providers are more favourable to discretionary and family trusts
>> Few lenders/credit providers may favour hybrid and unit trusts
Once you have established a trust and want to make an investment property purchase, you can apply for trust loans. Here is a list of documents that a lender/credit provider will require:
>> A certified copy of the stamped Trust Deed
>> A certified copy of the Company Constitution ( if it is a Company Trustee)
>> Tax Returns and Notices of Assessment for the Trust (unless it is a new trust, or if the trust is applying for a low doc loan)
>> Identification for all Trustees, directors of trustees and beneficiaries of the trust
A lender/credit provider will also perform credit checks on all the beneficiaries who will become guarantors, plus any business entity that is linked to the borrowing or who have an association with the borrowing trust and the directors for the entities.
The Role of Professionally Qualified Finance Broker in obtaining Trust Loans
Many mortgage brokers, lenders and banks do not have complete idea about all the types of trust structures. So, they hesitate in offering quick approval. So, it is important to choose an experienced and professionally qualified finance broker for managing your trust finance process.
If you choose an experienced and well-reputed finance broker, he/she will:
>> Understand your financial needs by working closely with your accountant and solicitor
>> Ascertain your current financial situation and devise an optimum strategy for you
>> Ensure that you meet all the lender’s requirements
>> Provide with various loan options
>> Help you in choosing the best trust loan option
Truly, an experienced and professionally qualified finance broker can prove to be blessing for borrowing under trusts. So, next time you start looking for obtaining trust loans, don’t forget to employ the services of an expert finance broker.
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