Financing that recognises foreign trust income?

Hi, I work 30 hours per week and also receive an income from an overseas trust that a relative set up for me years ago. I am the primary beneficiary, though there is a trustee that manages the trust. I have tried seeking recognition for said trust from a mortgage broker however most lenders who do recognise trusts need an official document/letter from the trustee stating that the trust will continue indefinitely.

The truth is the trust is legally a "discretionary" trust though there is no reason to believe the trust will stop at any point.

I currently do not own any property but would love to get my foot in the door soon with an investment property. The trust effectively doubles my salary and would make all the difference.

Alternatively, in place of recognizing a foreign trust, would any lenders be able to take into account my share portfolio as collateral, instead?

I guess what I am here to ask is, does anyone know of any more flexible lenders who would consider financing a person in this position? Happy to answer any more questions in a private chat. I am based in Brisbane.

 

How much is your salary.
How much income do the shares generate.
How much do you want to borrow?

 

Salary is ~40k, trust is ~40K
Dividends from shares are $8K P/A
I'd like to borrow around $400K, more if possible.

 

Unlikely to be included as income for servicing as discretionary and you don't control the trust. How would you evidence the income?. You might have some luck if you have 2 years history though.

 

Most lenders will add it back OUT where it appears in the tax return as foreign source income. The very nature of a discretionary trust is that there is no absolute entitlement to receive income. The trustee can choose not to distribute and generally you cant call for income or demand it or sue for it. Some may consider some types of trust income if you have control over the trustee. That can be difficult with a domestic trust let alone a foreign trust.