Structured borrowing

The structure decides the lender list before the numbers do

Borrowing through a family trust, a unit trust or a company narrows the panel sharply. Matching the structure to the right lender, in the right order, is what keeps the file simple.

22 Lenders on panel that accept trust borrowers
0.15% Typical rate premium over an individual borrower
100% Of files where directors give personal guarantees
2 wks Additional time a structured file typically takes
Who is this for?

Why people borrow through a structure

All legitimate reasons, and all of them cost you lender choice — so the benefit needs to be real.

01

Asset protection

Separating investment assets from business or professional liability. Genuinely valuable for business owners with real exposure, and largely pointless for a salaried employee.

02

Flexible income distribution

A discretionary trust allows income to be distributed among beneficiaries each year. The flexibility is real; so is the annual compliance cost.

03

Several parties in one investment

A unit trust gives unrelated investors defined proportional interests, which is far cleaner than tenants in common when one party wants to exit.

04

Succession planning

Assets in a structure pass through control of the trustee rather than through the estate, which can simplify succession and reduce the scope for dispute.

Your lending options

What lenders require from a structure

These requirements are near universal. Knowing them upfront is the difference between a two-week file and a two-month one.

Trust

The full trust deed

Lenders read it properly. Deeds without a clear power to borrow and grant security will stop the application outright, and amending one has tax consequences.

Trust

Corporate trustee preferred

A company acting as trustee is cleaner than individual trustees and is mandatory for several lenders. It also simplifies later changes of control.

Company

Personal guarantees from directors

Every director, and usually every adult beneficiary, guarantees the loan. The structure protects assets — it does not protect the guarantors.

Company

Full financials for the entity

Two years of entity financials plus personal returns for each guarantor. A newly established structure has no history, which limits the panel further.

Cost

Pricing and fees

Expect roughly 0.15% above an equivalent individual loan, higher application fees, and legal costs for the lender to review the deed.

Timing

Set it up before you buy

Restructuring after purchase means a transfer, which triggers stamp duty and potentially capital gains tax. The order matters enormously.

Rates and costs

What a structured purchase adds

An $850,000 investment purchase through a discretionary trust with a corporate trustee, against the same purchase in personal names.

Cost Via structure Personal Notes
Structure establishment $2,400 $0 Trust deed plus corporate trustee registration
Lender legal review $900 $0 Lender solicitor reviewing the deed
Application fee $895 $595 Higher for non-individual borrowers
Interest rate 6.19% 6.04% Approximately 0.15% premium
Annual compliance $1,800/yr $0 Accountant fees for the entity tax return

Indicative only, as at March 2026. Structure costs vary considerably by adviser and state. Nothing here is legal, taxation or financial advice — the decision to borrow through a trust or company should be made with your accountant and solicitor before you make an offer.

Why Lending Institute?

Where structured files stall

Almost never on serviceability. Nearly always on documentation the borrower did not know would be scrutinised.

01

We read the credit policy, not the rate sheet

Specialist lending is decided on policy detail — how a lender treats retained profits, whether a corporate trustee is acceptable, what liquidity an SMSF must retain. We track those rules across the panel and check them before we submit.

02

The file is built for the assessor

A complex file presented well is often approved where the same file, submitted raw, is declined. Financials, structure diagrams and a written explanation go in with the application, not after a query.

03

We tell you early when the answer is no

If your file will not place at a sensible rate, you will hear that in the first conversation rather than after three weeks and a credit enquiry. That honesty costs us applications and keeps our approval rate where it is.

04

Accreditation across the specialist panel

SMSF, commercial, bridging, alt-doc and credit-impaired funders each require separate accreditation and volume to maintain. We hold and use all of them.

What usually gets in the way
  • The trust deed lacks an express power to borrow or grant security
  • Individual trustees where the lender requires a corporate trustee
  • A newly established entity with no financial history to assess
  • Beneficiaries or directors unwilling to provide personal guarantees
How we place it
  • Deed reviewed against lender requirements before any application is lodged
  • Lenders selected for their specific trust and trustee policy, not headline rate
  • Guarantor obligations explained in full, in writing, before signing
  • Structure confirmed with your accountant before you make an offer, not after
How it works

Understand → Compare → Apply → Settle

01 Day 0

Tell us the whole story

Including the decline, the credit event or the structure you think is a problem. Nothing is placed until we understand it.

Credit impact — none
02 Days 1–10

Structure and match

Financials reviewed, the entity structure confirmed, and the file matched to funders whose policy it genuinely fits.

Credit impact — soft enquiry only
03 Weeks 2–3

Submit with the argument attached

The application goes in with financials, add-back workings and a written explanation for the assessor.

Credit impact — enquiry recorded
04 Weeks 4–8

Settle

Specialist files run longer. We manage valuations, legal review of trust deeds and the settlement booking.

Credit impact — account reported
Run the numbers

Model the borrowing capacity of the structure

Run the numbers on the entity position, check LVR against the 80% threshold, and estimate stamp duty for the purchasing entity.

Open the calculators
Common questions

Trust and company questions

Ask a broker →

No — roughly half our panel does, and policies differ within that group on trustee type, deed requirements and which beneficiaries must guarantee. Discretionary trusts with a corporate trustee are the most widely accepted; unit trusts with unrelated unitholders narrow the list considerably.

Not personally. Every director of a corporate trustee, and usually every adult beneficiary, gives a personal guarantee — otherwise no lender would write the loan. The structure protects assets held outside it from unrelated claims; it does not shield you from this debt.

Legally yes, but it is a transfer of ownership, which generally triggers stamp duty on the full value and capital gains tax on any growth. In most cases the cost is prohibitive, which is exactly why the structure decision belongs before the purchase rather than after it.

Not always, but it is strongly preferred and required by several lenders. Individual trustees create complications whenever a trustee dies, resigns or is replaced, since the title must be transferred each time. A corporate trustee costs a few hundred dollars a year and removes that problem entirely.

Typically around 0.15% on the rate, a higher application fee, and eight hundred to a thousand dollars in lender legal review. Add the establishment cost and ongoing accounting, and the structure needs to be earning its keep — which for a genuine asset-protection or distribution need it usually does.

Get started

Get the structure and the lender matched

Bring your accountant into the first conversation. The order these decisions happen in is what determines the cost.

Deed reviewedAgainst lender policy, before lodgement.
Guarantees explainedIn writing, in full, before you sign.
22 lendersOn panel and accepting trust borrowers.