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Company Lending
Property Loans for Pty Ltd Companies
Buying property in a company name has its advantages — asset protection, tax flexibility, business-name ownership. But lending to companies has its own rules. We navigate them across lenders who actually understand company structures.
Overview
How Company Lending Works
A proprietary limited (Pty Ltd) company can hold property in its own name. The company is a separate legal entity, so its property is shielded from the personal liabilities of its directors — provided the company is genuinely operating at arm’s length from the director personally.
Lenders treat company borrowing differently to personal borrowing. The company is the borrower on the loan, the company owns the security, but the directors (and sometimes shareholders) are required as guarantors. The directors’ personal income and credit are usually the primary basis for serviceability — the company’s own income only matters if it has standalone trading revenue.
Common reasons to hold property in a company include asset protection (for business owners exposed to commercial risk), tax efficiency where the company’s flat tax rate is preferable to high marginal personal rates, and operational reasons (the company is the trading entity and owns its own premises).
Not every lender lends to companies. Of those that do, some restrict to investment property only, some require personal guarantees from all directors and shareholders, and some load pricing for company applications. The right lender depends on the company’s structure, the directors’ position and the asset being purchased.
Key Features & Benefits
What’s Available in Company Lending
Company as Borrower
The Pty Ltd company is the borrower; the security is in the company’s name; the directors provide personal guarantees. Standard structure across most lenders that accept companies.
Investment & Owner-Occupied
Most company lending is for investment purposes, but owner-occupier business premises (where the company occupies the property) are also widely accepted — often at slightly better LVRs.
Director Guarantees
Standard requirement — all directors guarantee the company’s loan. Spouse guarantees are sometimes also required. We’ll explain the practical implications before you sign.
Full Doc & Alt Doc
Full doc uses company and director tax returns. Alt doc / lo doc uses BAS, accountant’s letter or business bank statements. Alt doc through a company is available but the lender pool is narrower.
Cross-Structure Borrowing
If you hold some property personally and some through a company, we structure the lending so loans aren’t cross-collateralised unless you specifically want them to be — preserving asset protection.
ASIC & Constitution Review
Lenders review the company’s ASIC extract and constitution. We pre-screen these and identify anything (like restrictive constitution clauses) that could delay or block approval.
Is This Right for You?
Is Company Lending Right for You?
The Process
Company Lending Process
Structure & Strategy Discussion
We confirm the company’s structure — sole director versus multiple, sole shareholder versus multiple, trading entity versus pure SPV — and identify the lenders best suited.
Documentation Pack
Company applications need ASIC extract, company constitution, director ID and tax returns, company financials (if it trades), and details of all directors and 25%+ shareholders. We help you assemble all of this.
Lender Shortlist & Pricing
We compare two or three lenders on our panel that take company applications at competitive terms for your specific structure and asset class.
Application & Credit
We submit and manage the application through credit. Company applications take longer than personal — typically 5–10 business days to formal — because credit has more to review.
Settlement
Company settlements work largely the same as personal — the lender’s solicitor coordinates with your solicitor and the vendor’s solicitor. We stay across it to keep dates.
FAQ
Company Lending Questions
Why would I buy property through a company instead of personally?
Asset protection (the company shields the property from your personal creditors and vice versa, provided the company is genuinely separate), tax flexibility (the company tax rate may be more favourable than your marginal rate), and operational considerations (the company is the trading entity and wants to own its own premises). It’s an accounting and legal decision, not just a finance one.
Do I have to personally guarantee the company’s loan?
In almost all cases, yes. Lenders require personal guarantees from directors (and sometimes shareholders). The guarantee means if the company defaults and the property doesn’t cover the debt, the lender can pursue you personally for the shortfall. This is standard and rarely negotiable.
Can I refinance an existing personal loan into my company?
Effectively, yes — but it’s structurally a sale from you to the company, triggering stamp duty (in most states) and potentially CGT. People do this when the long-term tax or asset-protection benefit outweighs the transaction costs. Talk to your accountant first.
Will the company’s trading history affect my loan?
If the company is purely a special-purpose vehicle (SPV) holding property and not trading, its history doesn’t matter — lenders focus on the directors’ income. If the company is trading, lenders will want to see two years of financials and may use the company’s income towards serviceability.
What if I’m the sole director and sole shareholder?
Very common. A solo director / shareholder company is the simplest structure for lenders — there’s one set of personal financials to assess, one guarantor. Most company-lending lenders are comfortable with this.
Discuss Your Company Purchase
Free consultation. Bring your company’s ASIC extract and a copy of the constitution. We’ll tell you which lenders work for your structure and what you can realistically borrow.
Get a Free Consultation