also posted on SS as a comment in this thread Tightening credit market and HDTs or PITs - Somersoft Property Investment Forums comments below refer to low-docs in a tightening market Currently we're hearing that the lenders want the trustee to be on the Loan (not a desired scenario in a HDT as I understand it). On Loan Agreements have also been discussed (unsure of the validity of these at this stage). Be interested to hear others opinions on the above *Or from others in this situation...
Hi Redwing St George used to be the best with HDTs, they allow 3 party loans - ie company owned with loan in director's name. Not sure if they will do this with Low Doc though as mortgage insurers involved at 60%+ LVR - but St George have their own mortgage insurers with different policies to the others. Also with the on-lending scenario. I am not sure how that would work as the HDTs worked by borrowing to buy the units. With on-lending, you would have to get the trustee to borrow and then on-lend the money to the individual to buy the units. it may be hard to justify to the ATO.
For our HDT loan it was in our personal names (the HDT didn't actually loan it) as lenders, we also happen to be the trustees, and we used the money to invest through the HDT, although the loan was secured by the property held in the HDT as mortgagee, I think ... the paperwork does the head in a bit . That was the desired structure for our purposes, so perhaps it is a case of whether the structure suits. Macquarie went off HDTs for a bit, but I think they're back now. Dave
