Borrowing through a family trust or discretionary trust isn't as straightforward as a personal loan — not all lenders accept it, and those who do have very different policies. Blambles understands trust structures inside out and knows exactly which lenders suit your setup.
Trust lending refers to obtaining a mortgage or property loan where the borrowing entity is a trust — typically a family (discretionary) trust, unit trust or hybrid trust — rather than an individual or company. Trusts are commonly used in Australia for asset protection, estate planning and income distribution purposes, and many investors and business owners hold property through a trust structure for these reasons.
Borrowing through a trust works differently from personal borrowing because the trust itself cannot hold a mortgage — it's the trustee (usually a company or individual) who takes on the legal liability for the loan, acting in their capacity as trustee. Lenders must be comfortable with the trust deed, the trustee's creditworthiness and the overall structure before they will lend. Not all lenders are willing to do this — and those who are tend to have quite different requirements.
Family trusts (discretionary trusts) are the most common structure. In a family trust, the trustee (often a company controlled by the family) has discretion over how income and capital are distributed to beneficiaries. This flexibility is valuable for tax planning but can complicate income assessment for lending purposes — because the trust's income may be distributed differently each year, making it harder for a lender to calculate a stable, recurring income figure.
Unit trusts are more structured — each unit holder has a defined share of the trust's income and capital — which can make income assessment more straightforward. Unit trusts are common for property development and joint investment purposes. Some lenders are more comfortable with unit trust lending than discretionary trust lending for this reason.
Blambles background as a Chartered Accountant gives him a real advantage here: he understands trust structures, can read trust deeds and knows which lenders have appetite for which trust types. This means less time wasted and a higher chance of a successful outcome at the right terms.
Property held in a trust is generally protected from creditors of individual beneficiaries — making it a popular structure for business owners, professionals and high-net-worth individuals.
A discretionary trust allows the trustee to distribute income to beneficiaries in the most tax-effective way each year — reducing the overall family tax burden on rental income.
Property held in a trust can pass between generations more smoothly than property owned personally — avoiding potential stamp duty on transfers and simplifying estate administration.
Blambles understands lending to trusts with both individual and corporate trustees — and knows the lender requirements for each. Corporate trustees often provide cleaner structures for lending purposes.
Where mainstream banks won't lend to trusts (or won't lend at competitive terms), specialist non-bank lenders often will. Blambles has access to both and knows which to approach for your structure.
Blambles knows how to document and present trust income — including addbacks and distribution history — to maximise the income assessed by lenders without overstating your position.
We review the trust deed, trustee details and the ownership structure to determine which lenders are suitable and what documentation they'll require.
Trust income can be complex to present. We work out the right way to document distributions, addbacks and business income to maximise assessed serviceability.
Blambles identifies lenders who are comfortable with your specific trust type and presents a complete application — including the trust documentation — in the right format.
Most lenders require personal guarantees from the trust's directors or beneficiaries. We prepare you for this process and ensure the guarantee structure is appropriate.
We coordinate with your solicitor and the lender to manage the settlement — ensuring the property is correctly registered in the trustee's name and all conditions are satisfied.
Trust lending is a niche that many brokers aren't well equipped to handle — because it requires genuine understanding of trust structures, income documentation and lender policy in this space. Going direct to your bank often results in either a flat refusal or a significantly less competitive product than is available through specialist lenders.
Blambles accounting background gives him a distinct advantage: he has read hundreds of trust deeds, understands the difference between individual and corporate trustees, and knows how lenders assess trust distributions as income. This translates into better applications and fewer frustrating surprises.
With access to 40+ lenders — including non-bank specialists who actively seek trust lending — Blambles can explore the full market on your behalf. And the service costs you nothing as a borrower.
Yes — a family trust can borrow, but the loan is technically taken in the name of the trustee (not the trust itself). This is because a trust is not a legal entity and cannot hold a mortgage — the trustee acts as the legal borrower, in their capacity as trustee. Lenders assess the trustee's creditworthiness and the trust's income as part of the application.
No — and this is one of the key reasons to use a broker for trust lending. Some major banks are quite restrictive about trust lending, especially for discretionary trusts or complex structures. Non-bank and specialist lenders often have better appetite for this type of lending. Blambles knows which lenders are genuinely comfortable with trust structures and will approach the right ones for your situation from the outset.
Almost certainly yes — most lenders require the directors or beneficiaries of the trust to provide personal guarantees for trust borrowings. The guarantee means that if the trust can't repay the loan, the guarantors are personally liable. This is standard practice and something Blambles will discuss with you as part of the application process.
Lenders typically look at the trust's tax returns and financial statements over two years, and the distributions made to individual beneficiaries. Because trust distributions can vary each year, lenders often average the income or use the lower of the two years. Correctly documenting and presenting trust income — including addbacks for non-cash expenses — is something Blambles handles carefully to maximise the assessed borrowing capacity.
Free consultation, no obligation. Tell us about your trust structure and what you're looking to purchase — Blambles will assess your options and find the right lender.