Buying property through a trust or company can be a smart approach, but the lending process rarely works the same way as a standard home loan. Many people discover early on that lenders assess these applications differently. Each one asks for different documents, reviews income in its own way, and applies its own policy rules.
It is common for clients to speak with two lenders and receive two very different responses.
If you use a trust or company, understanding how lenders assess these structures can help you prepare, avoid delays, and make informed choices.
Why Trust and Company Loans Are Assessed Differently
With trust and company applications, lenders take a closer look at how the structure operates. They review:
• Who receives the benefit of the income
• How income is distributed
• Whether there are related party debts
• How money moves in and out of the entity
• What liabilities exist across connected entities
Because each lender views these points differently, comparisons can become confusing. One may take a stricter approach while another may take a more flexible one.
The Most Common Trap
Hidden or Overlooked Liabilities
This is an area that often surprises borrowers.
Some lenders count every liability connected to any trust or company you are linked with, even if it does not relate to the new purchase. Others may only include certain debts when that entity cannot support them on its own.
This leads to major differences in borrowing capacity.
For example
• One lender may include all trust liabilities
• Another may exclude them if the trust income supports its debt
• A third may adopt a blended approach
These are policy differences rather than right or wrong answers. Choosing a lender whose policy aligns with your structure is important.
Why More Documentation Is Required
Lenders request extra documents for trust and company loans to understand the structure and clarify who is responsible for the debt.
You may be asked for:
• Full trust deed and any variations
• Company constitution
• ASIC extracts
• Financial statements
• Income distribution minutes
• Related entity tax returns
• Details of any personal guarantees
The list can be extensive, especially when documents sit with accountants, lawyers or previous directors or trustees. Having them available early can help the process move more efficiently.
Why Lenders Give Different Answers
Each lender has its own credit policy. This affects:
• How trust income is verified
• How beneficiaries are assessed
• How servicing is calculated
• How liabilities across entities are treated
Because of this, two lenders can assess the same application and reach different conclusions.
Our role is to explain these differences and help you understand which lenders may be more suitable based on your structure.
How Lender Choice Can Affect Future Borrowing
A lender that includes all trust and company liabilities, even when the structure supports those debts, may reduce your borrowing capacity. This can influence your ability to:
• Release equity
• Acquire additional properties
• Adjust existing loan structures
• Maintain cash flow
• Support business or investment plans
Selecting a lender with policies that align with your long term goals can help preserve flexibility.
How Mortgage Achievers Supports Trust and Company Borrowers
We work with a wide range of structures and focus on clear guidance throughout the process.
- We review your full structure
This helps us understand how each part interacts. - We identify lenders that align with your structure
Different lenders suit different trust or company setups. - We explain policies in clear, practical terms
We aim to make the process understandable. - We help gather documents early
This helps minimise delays. - We structure the application with long term flexibility in mind
Your goals guide the approach.
Key Questions to Ask Before You Apply
• How does the lender treat liabilities from other trusts or companies
• How is trust income assessed
• Are personal guarantees required
• Will the lender’s policy affect future borrowing capacity
• What documents will be required
Having this information from the start can help you prepare and avoid unexpected hurdles.
Want to understand which lender may suit your structure
We are available to discuss your situation and outline what different lenders may consider based on the information you provide.
FAQ
Trust and Company Borrowing in 2026
Do all lenders accept trust loans
No. It depends on the type of trust and the way income flows through the structure.
Do all lenders include liabilities from other entities
No. Each lender has different rules.
Will a trust reduce borrowing capacity
It can in some cases, depending on the lender and the structure.
Can you assist if documents are missing
Yes. We can advise what is required and coordinate with your accountant or adviser where needed.
Final Thoughts
Trust and company lending can feel complex, but with the right guidance and clear information, the process becomes more manageable. Understanding policies, preparing documents early, and choosing a lender that suits your structure can make a significant difference.
If you would like any sections adjusted further, just let me know.