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Margin Loan inside Trust

Discussion in 'Finance & Banking' started by DaveA, 1st May, 2007.

  1. DaveA

    DaveA Well-Known Member

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    i was having a look at the margin loans on infochoice if i decide to set up a trust...

    there seems to be 2 application feese, one company one individual,

    Comsec it is 135 and 0
    LE it is 250 and 250
    suncorp it is 150 and 150

    im a bit confused about the company and indiviudal price though, is the price different depending on the trustee? or maybe does it depend on type of guarentee given, does any know how it works?

    additionally most rates are quite similar (between 8.7 and 8.9) for 12 month fixed so the suncorp rate is really quite low....
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I think you'll find that a trust will be charged the company fee (most lenders list it as a "company/trust fee") - they typically get a solicitor to check the trust deed to ensure it is valid and allowed to borrow money in this way. I don't think it would matter what type of trustee.
     
  3. Redwing

    Redwing Well-Known Member

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    They will probably want a certified copy of your trust deed (get it sighted and stamped by a JP) then send of to the Margin Lender with the application.
     
  4. SydneyCider

    SydneyCider Member

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    Dave, how did you go with your margin loan using the trust ?

    I'm exploring the same possibility, but trying to find a lender with the least paperwork hassles and competitive rates and lends on Navra :)

    I check the comsec one and it seems there is the $135 company fee +
    $200 trust deed investigation fee.

    Love to hear recommendation from people who have done this without too much pain and didn't need to visit solicitors for $250 autographs etc.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    St. George Margin Lending weren't too bad ... there were the normal fees for trusts, and you need a stamped copy of your trust deed. They offer 75% LVR on Navra too.
     
  6. SydneyCider

    SydneyCider Member

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    only 1 problem with St George is that appear to be close to stopping further loans on Navra retail.

    From the latest acceptable securities list.

    * Near Maximum - Further lending on this security may not be accepted
     
  7. SydneyCider

    SydneyCider Member

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    Just completed the application with Suncorp as they still have the very competitive rate going of 7.85% 1 yr fixed (only gone up .05).

    $300 charge for company / trust.

    I hope it's hassle free, can't stand the paperwork and signatures involved in trust transactions :(
     
  8. DaveA

    DaveA Well-Known Member

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    well i wont be setting up my trust until the end of the year so i havent yet appiled, i think i 2 will go with suncorp as they seem to have a great prepaid interest rate which is nearly 1% lower than most people... i will consider LE when it comes time to apply though...

    please keep me informed as to your progress...
     
  9. SydneyCider

    SydneyCider Member

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    Well, it's 8 Business days since I lodged my Suncorp application and they still haven't banked my application cheque.
    Time for a chase up call I think.
     
  10. SydneyCider

    SydneyCider Member

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    Paperwork finally arrived today and the margin loan with Suncorp has been established.
    However..... the letter and online account only lists the company name, nowhere does it mention the account is a pty ATF xxx trust.
    I called them and they said the account is flagged as a company trust account.

    Anyway I've requested them update the name, but they are going to look into it.

    All my other accounts show the full trustee and trust details, so I'm a little concerned this is not correct.

    Anyone got a Suncorp a/c that does show the full name correctly ?

    Thanks
     
  11. Liverpool St

    Liverpool St Well-Known Member

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    margin loan and IP inside HDT

    More on Margin Loans....I have a margin loan with LE and an IP inside a HDT. I operate the trust thru an ANZ bank account specially set up for the running of the trust. I place dividends from the share fund and rental income inside the ANZ bank account. I suppose the bank account keeps it all clear and concise but is it mandatory? Can I just place the rental income/share dividends inside a normal savings account with all the other junk, seeing that I will have statements from the share fund and rental statements to show my accountant....

    What do u reckon?
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Keep it all separate - best to show a clear paper trail to show that the assets held by the trust really were purchased by the trust!! Also helps keep things clean for tax purposes.
     
  13. Liverpool St

    Liverpool St Well-Known Member

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    HDT


    Thanks Sim,

    I was just trying to get rid of as much paperwork as possible. One less bank account looked good..but, I better keep it

    Thanks