Trust Loans

Secure Your Next Property with a Trust Loan in Sydney

If you already have a trust set up and you're considering buying property, a trust loan might be the right move. These types of loans allow the trust itself, rather than an individual, to take out a mortgage to purchase or invest in real estate.

Trust loans are often used by investors and families who want to protect assets, distribute income effectively, or plan for the future. But because of the complexity involved, not all lenders treat trust applications the same, so it's crucial to get expert guidance from the outset.

How Do Lenders Assess a Trust Loan?

Trust loans are more complex than standard home loans. Here’s what lenders typically look at

  • Type of Trust

    Some banks are more comfortable with discretionary or family trusts, while others prefer unit, hybrid, or SMSF structures. Each lender has its own policy on which trust types they accept.

  • The Trust Deed

    The trust deed outlines who the beneficiaries are, who controls the trust, and whether the trustee has authority to borrow. Lenders will want to review this in full.

  • Credit History of Trustees

    While the trust applies for the loan, it’s the people behind the trust, usually the directors or individual trustees, whose financial position, income, and credit history are assessed.

  • Guarantors

    In some cases, lenders require personal guarantees from all adult beneficiaries of the trust. This ensures that someone is liable for repayments, even if the trust faces challenges.

  • Loan Structure

    With multiple beneficiaries or complex arrangements, the loan structure must be carefully designed to align with both lending policy and the trust’s intentions.

  • A trust loan is a mortgage where the borrower is the trust or trustee. While the trustee signs the loan documents, the loan is ultimately for the benefit of the trust and its beneficiaries. These loans can be used to:

    • Purchase or refinance residential or investment properties

    • Strategically distribute tax liabilities

    • Safeguard assets from personal liability

    • Set up long-term succession or estate planning

  • The most common trusts used in property finance include:

    • Family Trusts

    • Unit Trusts

    • Discretionary Trusts

    • Hybrid Trusts (Property Investment Trusts)

    • Service Trusts

    • Self-Managed Super Funds (SMSFs)

    Each of these structures comes with its own lending rules, tax treatment, and loan structuring options.

  • Item descriptionThere are clear benefits to purchasing through a trust: tax planning, asset protection, and greater flexibility. But it's not for everyone. You need to consider the costs, lender restrictions, and future implications—especially when it comes to refinancing or selling.

    That’s where our expertise makes a difference.

Vita Finance: Experts in Trust Loan Lending

At Vita Finance, we know which banks understand trust structures and which ones to avoid. We can:

  • Review your trust deed and structure

  • Recommend lenders that suit your trust type

  • Structure your loan to ensure its tax-efficient and competitive

  • Guide you through guarantor requirements and documentation

  • Help you avoid costly mistakes that others often miss

Trust loans can be complex, but they don’t need to be confusing.

Call us today to speak with a lending specialist who understands trust finance inside out. Or simply click below to get started with your loan strategy.