Buying property through a company or trust can be useful for some investors and business owners, but lending can be more complex than a standard personal home loan.
Not every lender accepts company or trust borrowers, and policies can vary significantly.
Why use a company or trust borrower structure?
Borrowers may consider company or trust structures for asset protection, investment planning, business ownership or tax planning reasons. These structures should always be discussed with an accountant and solicitor before applying.
What lenders usually assess
Lenders may review:
- Company or trust documents
- Directors and guarantors
- Trust deed and trustee details
- Financial statements and tax returns
- Loan purpose
- Property type
- Borrower income and servicing capacity
Residential lending under company or trust structures
Some lenders may allow residential investment property loans under company or trust structures. Owner-occupied lending through a company or trust may be more limited and requires careful assessment.
Common challenges
- Fewer lender options
- More documentation required
- Higher rates or fees in some cases
- Complex servicing assessment
- Guarantor requirements
How Nine Fincap can help
Nine Fincap works with clients, accountants and lenders to structure company and trust borrower applications properly. We help identify suitable lenders and prepare the supporting documents required for assessment.
Buying through a company or trust? Speak to a Lending Specialist before you apply.
Disclaimer
This article is general only and is not legal or tax advice. Seek independent professional advice before choosing an ownership structure.