Family trust refinance with corporate trustee

Hi

Hoping to seek advice from mortgage brokers or those familiar with this. Currently I have a discretionary family trust with a corporate trustee structure. Loan was $300,000 back in 2017 property is now worth $600,000. 2 Directors with myself as a personal guarantor. I injected cash and left $5 owing on the loan.

I now live overseas and classed as a non resident, the other director is still in Australia.
I wish to purchase another property in QLD and hoping to use the corporate trustee to refinance and obtain a loan on the new property.
Is this possible using the finance from the corporate trustee itself? Will lenders touch this knowing I am a non-resident director. The 2nd director has fully maxed out his borrowing capacity.

 

Lenders don't like lending where someone else will use the money as it makes recovery more difficult.

But is would still could be possible for the trustee to borrow where one of the directors is overseas. It will all depend on serviceability and use of the money. All directors would be required to give personal guarantees though.

 

Actually, it might be possible for you to borrow against the trust property - you as the borrower with the trustee as the mortgagee with a guarantee by the company.

 

Also depends on how and where your income is derived from ..eg...what currency ..employee or self employed

 

Thanks Terry. So in this scenario if I use the same family trust to purchase the 2nd property. So the trustee is the mortgagee with a Guarantee by the company but my personal income overseas is assessed as the borrower?
Was thinking if I refinanced and extracted the equity and funds injected would be sufficient since I'm looking at Townsville.

Cheers.

 

Who will own the new house?

 

the existing family trust that owns property 1 will also own the new property.

 

In that case its the trustee that should be borrowing

 

Was the 2nd director not a guarantor for the loan back in 2017? Would have thought they would have been otherwise would not be an acceptable structure. OR did the 2nd director come on because you were OS? cant see how this can work without bringing the 2nd director in as a guarantor.