Company / Trust Deal Structure
Some loan applications use a Company or Trust structure, where the borrower and security owner are the Company or Trust, and the guarantors are the Company’s directors or the Trust’s beneficiaries.
This structure is similar to an SMSF deal structure. You can read more about SMSF setups here.
Add new deal
When creating a new deal:
Add the Company as the Client
Add Trust as the Client
Add Directors or Beneficiaries as Servicing Guarantors
Trustee, company individuals and beneficiaries do not need to be set up in this screen.
Deal structure should now look like this:
Set up Company / Trust in Home Loan Tools
In Home Loan Tools, open the Trust client and add relevant trust information and contact details:
Add existing Trustee (one added in Add New Deal screen) and add trust beneficiaries:
Add Trust addresses and any notes if required:
Set up Trustee (if company) as follows
Add Company details and add Entity individuals - typically as an existing Servicing Guarantor that was added in Add New Deal screen:
Security and loan ownership
Set Security Ownership to 100% Trustee company
Set Loan Ownership to 100% Trustee company
Lodgement
Finally:
Push the deal to the relevant lender gateway
Confirm that the Company / Trust / Guarantor structure is correctly reflected in the gateway before submission