Company vs Trust Borrowing for Property Investment

Senior mortgage brokers:

I understand that for asset protection, we can normally use one of these structures to hold properties:

1. Company with shares owned by discretionary trust, or shares owned by unit trust with units owned by discretionary trust

2. Discretionary trust with corporate trustee, with individual beneficiary, or with corporate beneficiary with shares owned by discretionary trust

3. Unit trust with corporate trustee, with units owned by discretionary trust

When it comes to borrowing for investment property purchase, which structure makes it easier to get finance from servicing perspective, loan product feature perspective, and assessment perspective?

Thanks!

 

Asset protection from what and in which direction? What do you do that needs asset protection? How about trust specific issues like foreign beneficiaries?

 

We set these up weekly for clients and help on the loan side too.

Finance is the same generally as trusts can't actually borrow, it is the trustee that borrows.
There are some slight differences between a company borrowing in its own right and as trustee. though

It will come down to the structure of the trust and the structure of the trustee.

 

Definately an area where having Terry as broker is a help as he can address all the legal aspects and the asset protection. I would argue as far as brokers go he also knows which lenders have what structural requirements and looks it it with two hats on. (legal + Finance). Actually three... he also knows tax.