I have a family trust with 20% deposit which I am using to buy a property. The trust will own the property but won't have anything else in it. I am taking out a mortgage and will be make the repayments myself.
The bank has told me that they need my fellow trustees (family members) to be co-borrowers and guarantee the loan. I don't want the trustees to have to disclose all their personal details to the bank let alone guarantee the loan. Surely the trust can own the property without the trustees having to sign the dotted line to be personally liable?
i would have thought I would be the borrower in my personal capacity and guarantee the loan, and that the trust would simply put the property up as security given it will have legal ownership of the asset. Does this sound right and what should I be telling the bank?
Thanks heaps in advance!
The bank has told me that they need my fellow trustees (family members) to be co-borrowers and guarantee the loan. I don't want the trustees to have to disclose all their personal details to the bank let alone guarantee the loan. Surely the trust can own the property without the trustees having to sign the dotted line to be personally liable?
i would have thought I would be the borrower in my personal capacity and guarantee the loan, and that the trust would simply put the property up as security given it will have legal ownership of the asset. Does this sound right and what should I be telling the bank?
Thanks heaps in advance!
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