Invest Smarter — Buy Property
Through a Trust.
Buying property through a trust structure offers real benefits — asset protection, tax flexibility, and estate planning advantages. But trust lending is more complex than standard home loans, and not all lenders offer it. We know which ones do, and how to get your application approved.
What Is a Trust Loan?
A trust loan is a home or investment loan taken out in the name of a trust rather than an individual. The trust — whether a discretionary (family) trust, unit trust, or SMSF — becomes the borrower, with the trustee signing on its behalf.
Trust loans are more complex to arrange than personal loans because lenders need to assess the trust deed, the trustee's financial position, and the trust's capacity to service the debt. Not all lenders offer trust lending — and those that do have varying policies on trust types, LVR limits, and acceptable structures.
Working with a broker who understands trust lending is essential to avoiding rejected applications and wasted time.
Discuss My Trust LoanCommon Trust Structures for Property
Each trust type has different lending implications. Here's what you need to know about each.
Discretionary (Family) Trust
The most common structure for Australian property investors. The trustee has discretion over how income and capital are distributed to beneficiaries — offering significant tax flexibility. Most major lenders will consider lending to discretionary trusts with an individual trustee.
Unit Trust
Beneficiaries hold fixed units in the trust — similar to shares in a company. Commonly used in joint investment arrangements. Lending policies vary significantly between lenders — some require all unit holders to be guarantors.
Self-Managed Super Fund (SMSF)
SMSFs can borrow to purchase investment property through a Limited Recourse Borrowing Arrangement (LRBA). Complex regulatory requirements apply. Only a small number of lenders offer SMSF lending, and rates are typically higher. Specialist advice is essential.
Hybrid / Corporate Trustee
Some investors use a company as trustee rather than an individual — offering additional asset protection. This adds complexity to the lending process as lenders must assess the company structure as well as the trust.
Why Do Investors Buy Property Through a Trust?
Key Benefits
- Asset protection — property held in trust is generally protected from personal creditors
- Tax flexibility — income can be distributed to beneficiaries in lower tax brackets
- Estate planning — simplified transfer of assets to future generations
- Land tax benefits in some states — trusts may qualify for separate thresholds
- Business succession planning
Important Considerations
- Trust loans are more complex and take longer to arrange
- Fewer lenders — less competition on rates
- LVR typically capped at 80% — LMI rarely available
- Negative gearing benefits don't flow to individual beneficiaries in all structures (seek tax advice)
- Trust setup and ongoing compliance costs can be significant
Trust structures involve complex legal and tax considerations. Always seek advice from a qualified solicitor and accountant before establishing a trust for property investment.
What Lenders Look at for Trust Loans
Trust loan applications require more documentation than standard loans. Here's what lenders want to see.
Trust Deed
The founding document of the trust. Lenders review it to confirm the trust's purpose, the trustee's powers, and that borrowing for property is permitted.
Trustee's Financial Position
Whether an individual or corporate trustee, lenders assess their income, assets, and liabilities — as the trustee is personally responsible for the loan.
Beneficiary Details
Some lenders require all beneficiaries to be disclosed and may require guarantees depending on the trust type.
Trust Tax Returns
Lenders want to see the trust's income history — typically 2 years of tax returns and financial statements.
Loan Purpose
Whether the trust is purchasing for investment or other purposes affects which lenders will consider the application.
From Trust Setup to Settlement — in 5 Steps
Trust loans take more preparation — we handle the complexity so you don't have to.
Free Assessment
- Review your trust structure and documentation
- Identify lenders that accept your trust type
- Confirm serviceability and LVR position
Lender Matching
- Compare lenders that offer trust lending
- Match based on trust type, LVR, and rates
- Present your options clearly
Application Preparation
- Compile trust deed, tax returns, and trustee documents
- Prepare a complete application package
- Manage lender queries throughout
Approval & Valuation
- Lender assesses trust structure and trustee position
- Property valuation ordered
- Formal approval issued
Settlement & Beyond
- Settlement coordinated
- Rate reviews every 6 months
- Ongoing support as your portfolio grows
Frequently Asked Questions — Trust Loans
Why Choose Based Finance for Trust Loans
We Understand Trust Lending
Trust loans are a specialist area. We know which lenders accept which trust types, what documentation is required, and how to present applications for approval.
60+ Lenders — Including Trust Specialists
Our panel includes lenders who actively support trust lending — giving you access to competitive rates even in this more complex space.
Free Service
Completely free to you. We're paid by the lender after settlement — expert guidance at zero cost.
Full Documentation Support
We provide a complete checklist and help you compile trust deeds, financial statements, and trustee documentation — reducing delays.
SMSF Lending Experience
We have experience with SMSFs — a specialist area that many brokers avoid.
We Work With Your Advisers
Trust lending intersects with legal and tax advice. We coordinate with your solicitor and accountant to ensure the structure and loan align.
Fast Pre-Approvals
Even for trust loans, we aim for pre-approval within 2–5 business days where documentation is complete.
Plain-English Guidance
Trust structures can be confusing. We explain every aspect of your loan clearly so you always know where you stand.
Ongoing Support
Rate reviews every 6 months and strategic advice as your trust portfolio grows.
Get Your Free Trust Loan Assessment
Tell us about your trust structure and investment goals — we'll identify which lenders suit your situation, what documentation you'll need, and how to get your application approved. No cost, no obligation.
What Can You Actually Borrow?
Tell us where you're at — we'll give you a straight answer on what you can borrow, which lenders suit your situation, and what it'll actually cost. No broker fees, ever.
Tell Us What You're After
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Expect a call or email within one business day. We're available on weekends too.
This page contains general information only and does not constitute financial, legal, or credit advice. Trust structures involve complex legal and tax implications. Always seek advice from a qualified solicitor and accountant before establishing or borrowing through a trust. Eligibility depends on individual circumstances. Fees and charges may apply.