Discretionary (Family) Trust & Mortgage

Hi Guys

yes new to form and need some backgroud info re how to buy a residential property under Family Trust? I am not sure whether the trust deed we need a specific type of trust deed to allow us to take mortgage to buy property

I look forward for suggestions pls.... Thanks

 

A discretionary or family trust is what the majority of investors set up here. However, it's best to speak to your accountant here as there are other types of trusts eg: hybrid or unit, that may be more applicable in your specific situation.
Hope that helps.

 

thanks Jacque

 

The trustee needs to have the power to borrow and no restrictions such as the ability to mortgage the trust assets, permission needed off beneficiaries etc and this needs to be drafted into the deed. This is why banks often charge to review the trust deed to check if the power is in there. Most deeds would have it, but some would specifically exclude it.

 

Thanks Terry that helps,

I did specify it to my lawyer and accountant doing the trust deed and understand that the trustee is not restricted to take the mortgage.

regards