Rental income from family trust

This is more of a curiousity question then anything else; I was wondering if one of the mortgage brokers could please explain to me how banks assess rental income that comes from a family discretionary trust, when working out servicability.

Does having property kept in a family discretionary trust, impact the way banks veiw the rental income for servicability purposes?
Do they just assess the entire gross rental income the same was as they would if the title was in the beneficiary's own name? Or do they only count the portion of the income that actually gets transferred from the trust to each individual beneficiary? If so, how do they assess this, seeing as it is 'discretionary' and not nesscarily a fixed amount between beneficiaries. And if some of the beneficiaries are minors and dependants of the loan applicants, can their trust income be included for servicability purposes too?

 

How brokers assess? Or lenders?

Most brokers would start with the gross rent, putting the deal in the best light possible.

Lenders will discount the rent to account for vacancies and other costs.
Some lenders or individual credit people would want to only use the rental income as it’s transferred to personal names.

If it was possible it could be transferred to others not in that particular loan application a lot of lenders wouldn’t use the income at all.

 

I wondered whether the discretionary trust income might be treated in the same way as dividends?? A portion included in serviceability with evidence of a couple of years of consistent distributions?