Holding property in a company name has specific advantages for asset protection and tax planning — but lending to companies requires specialist knowledge and access to the right lenders. Blambles understands both sides of this equation.
Company lending refers to a situation where a registered company — not an individual or trust — is the borrowing entity for a property loan. This might be a proprietary limited company (Pty Ltd) or a company acting as a trustee for a trust. Company lending is used for a range of purposes: purchasing commercial property for business use, holding investment property within a corporate structure, or purchasing real estate as a holding company within a broader group structure.
From a lender's perspective, a company borrower introduces a different risk profile to an individual borrower. Companies have legal personality separate from their directors — meaning a director's personal assets aren't automatically at risk if the company defaults. For this reason, most lenders require director guarantees as a condition of company lending: the directors personally guarantee the company's obligations under the loan, effectively bridging this gap.
Not all residential lenders work with company borrowers — in fact, many mainstream banks only lend to companies for commercial property, not residential investment properties. For residential properties held in a company name, specialist lenders are often required. Commercial property in a company name is more straightforward, and there are more lenders willing to consider it, though the terms and LVRs differ from personal borrowing.
The income assessment for company lending depends on how the loan will be serviced. If the company has its own trading income and the property is used by the business, the company's financials drive the assessment. If it's an investment property held in a company for asset protection purposes, the assessment typically relies on the personal income of the director guarantors — combined with rental income from the property.
Property held in a company is separate from the personal assets of the directors — providing a layer of protection in the event of personal insolvency or legal claims against individuals.
Companies pay a flat corporate tax rate on profits — which can be lower than the marginal tax rate for high-income individuals — though the full tax implications should be discussed with your accountant.
For businesses that own their own premises, holding the property in a company (or as the trustee of a trust) is a common and effective structure used by business owners across Queensland.
Where mainstream banks won't lend to companies for residential property, specialist non-bank lenders often will. Blambles has access to both and knows which suits your company's structure.
Blambles helps you understand exactly what personal guarantee obligations a company loan involves — so you can go in with clear expectations and properly structured documentation.
Whether the company is purchasing commercial premises for its business or residential investment property, Blambles can identify the right lenders and structure for the specific purpose.
We review the company structure — directors, shareholders, financial accounts — and the purpose of the loan (commercial owner-occupier, investment, etc.) to identify suitable lenders.
Company lending requires company tax returns, financial statements and often director personal tax returns. Blambles prepares a clear, complete picture of the company's financial position.
We match the deal to the right lender — whether a mainstream bank for commercial purposes or a specialist non-bank for residential company lending — and lodge a complete application.
Company loans require additional legal documentation — including director guarantee deeds. We coordinate with your solicitor to ensure this is handled correctly.
The property settles in the company's name, with the mortgage registered against the company. We confirm all conditions are satisfied and the loan is correctly set up.
Company lending sits at the intersection of commercial and residential finance — and it requires a broker who understands both. Many brokers default to saying "your company can't borrow for residential property" — when in reality, the right specialist lender can absolutely accommodate this, at reasonable terms. The key is knowing where to look.
Blambles accounting background means he speaks the same language as the lenders' credit teams when it comes to company financials. He understands director loan accounts, retained earnings, trading income versus distributions, and what the numbers actually mean — which translates into stronger applications and fewer requests for additional information.
With access to 40+ lenders — including specialists who actively seek company lending — Blambles can find solutions that your bank simply won't offer. And as always, the service is free to you as the borrower.
Yes — but the options are more limited than for individual borrowers. Most mainstream banks restrict residential lending to individuals. Specialist non-bank lenders, however, do lend to companies for residential investment properties. The rates are generally slightly higher than personal borrowing, and director guarantees are typically required. Blambles knows which lenders accept company borrowers for residential property and at what terms.
Almost certainly yes. Personal guarantees are standard for company lending — they mean that if the company can't repay the loan, the guarantors (usually the directors) are personally liable. The guarantee effectively makes directors co-borrowers in terms of personal risk. This is something Blambles will explain clearly before you commit to any application.
Yes — commercial property lending to companies is more common and better supported by mainstream lenders than residential company lending. Most commercial lenders are comfortable with a company as the borrowing entity, particularly where the company is also the business occupant. The assessment looks at the company's trading income and the property's value/lease (if investment).
Lenders typically want two years of company tax returns and financial statements — looking at trading profit, director salaries, dividends and the company's cash position. Blambles understands how lenders read company accounts and how to present addbacks (non-cash expenses like depreciation and amortisation) to improve the assessed serviceability position.
Free consultation, no obligation. Tell us about your company structure and what you're looking to purchase — Blambles will find the right lender for you.