Home › Services › Trust Lending
Trust Lending
Mortgage Loans for Family & Discretionary Trusts
Borrowing through a trust is more complex than borrowing in your own name — not all lenders accept it, and the ones that do have specific rules about deed structures, guarantor obligations and serviceability assessment.
Overview
How Trust Lending Works
Australians use trusts — particularly family discretionary trusts and unit trusts — to hold property for asset protection, tax planning and intergenerational wealth transfer. The trust itself isn’t a legal person; it’s a relationship in which a trustee holds property for the benefit of beneficiaries. That structural quirk matters to lenders.
Most lenders require the trustee (typically a corporate trustee — a Pty Ltd company set up specifically as trustee) to be the borrower on the loan. The beneficiaries — or the individuals who control the trust — are then required as guarantors. The loan documents will reference both the trust and the corporate trustee, and the security will be in the trustee’s name.
Serviceability is usually assessed against the income of the beneficiaries / controllers, not the trust itself (unless the trust has substantial standalone income from existing assets). For a discretionary trust setting up to buy a single investment property, expect lenders to assess your personal income, debts and living expenses much as they would for an individual borrower.
Not every lender lends to trusts. Of those that do, fewer accept unit trusts than discretionary trusts. Some require a copy of the trust deed in full; others a deed summary. Some require legal sign-off on the trust at the lender’s cost; others rely on a solicitor’s letter. The right lender depends on the deed, your structure and the asset.
Key Features & Benefits
What’s Possible in Trust Lending
Discretionary Trust Lending
Most common — used for asset protection and tax flexibility. Accepted by a wide range of lenders, both major banks and specialist non-banks.
Unit Trust Lending
Less universally accepted than discretionary trusts but available with several lenders on our panel. Common for property held jointly with unrelated unit-holders.
Hybrid Trust Structures
Hybrid trusts (combining discretionary and unit features) are accepted by a narrower group of lenders. We know which ones.
SMSF Bare Trusts (LRBA)
For SMSF property purchases — a custodian bare trust holds the property on behalf of the super fund. This is a specialist structure (see SMSF Finance) supported by a smaller group of lenders.
Corporate Trustee Setup
Most lenders require a corporate (Pty Ltd) trustee rather than an individual trustee. If your trust currently has individual trustees, we’ll let you know if a restructure is required before applying.
Full Doc & Alt Doc
Trust lending is available both full doc (using beneficiary tax returns) and alt doc (using BAS, accountant’s letter) — though alt doc through a trust is a smaller lender pool.
Is This Right for You?
Is Trust Lending Right for You?
The Process
Trust Lending Process
Structure Review
We start by reviewing the trust deed (or proposed deed if it’s being set up) to confirm the structure is acceptable to lenders, and that the trustee and guarantor configuration will work.
Lender Shortlist
Not every lender takes trusts; fewer take unit trusts; fewer still take hybrid trusts at competitive pricing. We narrow to the lenders most likely to approve at the best terms given your specific structure.
Document Pack
Trust applications need more documents than personal applications — the deed, the trustee ASIC extract, beneficiary IDs and tax returns, evidence of the trust’s existing assets if any. We help you assemble it.
Application & Credit
We submit, manage credit’s queries on the trust structure (which can be technical) and progress through to formal approval. Trust applications take longer than vanilla personal applications — typically 5–10 business days to formal.
Legal & Settlement
The lender’s solicitor typically requires sign-off on the trust deed (sometimes at the borrower’s cost). We coordinate this with your solicitor and the lender to keep settlement on track.
FAQ
Trust Lending Questions
Can I borrow more through a trust than in my own name?
Generally no — lenders assess serviceability against the income of the trust’s beneficiaries / controllers, much as they would assess you personally. The trust structure doesn’t add borrowing capacity. It changes asset ownership and tax treatment, not income.
Do I need a corporate trustee?
Most lenders strongly prefer or require a corporate trustee (a Pty Ltd company acting as trustee) rather than an individual trustee. If your existing trust has individual trustees, expect to change to a corporate trustee before borrowing — your solicitor can do this.
Will the bank ask to see my trust deed?
Yes — most lenders require the full trust deed (some accept a deed summary signed by your solicitor). The lender’s solicitor will review it for any provisions that might affect their security. This is normal and not a barrier in most cases.
Can I refinance a property I currently hold personally into my trust?
Yes — but it’s a sale from you to the trust, which triggers stamp duty and capital gains tax. Most people do this only when the tax benefit of holding through the trust outweighs the transaction costs, with their accountant’s guidance. We’ll structure the lending side around your accountant’s recommendation.
Is trust lending more expensive?
Slightly. Trust applications often attract a small loading on application fees and a few lenders price the loan 0.05–0.15% above the equivalent personal loan. The pricing difference is usually modest; the bigger consideration is which lenders accept your specific deed.
Discuss Your Trust Structure
Free consultation. Bring your accountant’s recommendation and a copy of your trust deed (or a draft if it’s being set up). We’ll tell you which lenders will work for your structure.
Get a Free Consultation