Finance This, Property That
Finance This, Property That is your go-to podcast for expert insights and advice on building wealth through property investment.
Hosted by, Dion Fernandes, a seasoned finance professional with over 13 years of experience, each episode delves into the intricacies of property purchasing, offering valuable tips and strategies for those looking to create wealth through real estate.
From basic questions to advanced technicalities, Dion brings on trusted advisors and specialists in their fields to provide listeners with practical knowledge and actionable steps.
Whether you're a first-time buyer, a seasoned investor or simply looking to expand your property portfolio, Finance This, Property That is here to empower and educate you every step of the way.
Finance This, Property That
Episode 51: Trust Lending: How the Wealthy Buy Without Killing Their Borrowing Capacity
🎧 Episode Synopsis
In this episode, mortgage planner and finance strategist Dion Fernandez unpacks the powerful strategy of trust lending—a financial tool often used by wealthy investors to protect assets, optimize tax outcomes, and preserve borrowing capacity. Dion explains how trusts can be leveraged to build strategic property portfolios, where many brokers and buyers get it wrong, and the critical steps to take before applying for a loan under a trust. Whether you’re a doctor, developer, business owner, or investor looking to scale your portfolio smartly, this episode provides essential insights to help you grow with confidence.
🔍 Episode Breakdown
00:00 – 01:30
Intro & Who This Podcast Is For
- Dion introduces the show’s mission: strategic lending for property enthusiasts and professionals.
- Emphasis on building wealth with structure, not just chasing low rates.
01:30 – 03:30
Why Trust Lending?
- Overview of why clients use trusts: asset protection, borrowing power, income distribution, and estate planning.
03:30 – 06:00
Strategic vs Reactive Trust Setup
- Key differences between proactive and reactive trust setups.
- Importance of planning with accountants and financial planners.
06:00 – 08:30
Common Mistakes Made by Banks, Brokers & Buyers
- Challenges with inexperienced bankers and brokers.
- Missteps around servicing policy and missed opportunities due to lack of understanding.
08:30 – 11:00
Servicing Implications & Costs
- Limitations like no negative gearing (in most cases).
- Upfront and ongoing costs vs. opportunity cost of capital growth.
11:00 – 13:00
Types of Trusts for Property Lending
- Discretionary trusts (most common), unit trusts, hybrid trusts, and SMSFs.
- Considerations for lender policy compatibility and structure fit.
13:00 – 15:30
Documentation Requirements
- Trust deed, amendments, corporate trustee info, and possible financials.
- Note: lenders avoid lending to trading entities.
15:30 – 17:00
Case Study: Medical Professional’s Portfolio Strategy
- Real example of a client scaling from 2 to 5 properties using trusts and SMSFs.
- Benefits of diversification and lender alignment.
17:00 – 18:00
Key Takeaways & Final Advice
- Work with experienced brokers.
- Set up trusts before you need them.
- Choose lenders based on structure compatibility—not just rate.
📲 Connect with Dion Fernandez
- Instagram: @dionfinancespecialist
- LinkedIn: Dion Fernandez
- Website: www.financethispropertythat.com.au