How Do Trust Home Loans Work in Australia?

Buying property in a trust is common among investors, business owners and families who already use a trust for other assets. It can also be confusing, because a home loan in trust does not work the same way as a loan in your own name.

The trust itself is not a person. The loan is made to the trustee, who borrows on behalf of the trust. The people behind the trust, such as directors, unit holders or beneficiaries, are usually asked to support the loan with guarantees.

Different kinds of trust are also treated very differently. A family (discretionary) trust, a unit trust, a hybrid trust and a self-managed super fund (SMSF) are all trusts, but lenders have separate rules for each, and many lenders do not lend to some or all of them.

This guide is an overview of how trust home loans work in Australia, based on lender policy wording we reviewed in October 2026. It links to our more detailed guides on each type of trust.

How does a trust home loan work?

A trust home loan is a loan where the borrower is the trustee of a trust, acting in that capacity. The property is bought in the trustee’s name as trustee, and the loan is secured by a mortgage over that property.

In most trust loans:

• the trustee (an individual or a company) signs the loan as borrower, for the trust
• the trust deed must allow the trustee to borrow and to give a mortgage
• directors of a corporate trustee, unit holders or key beneficiaries are often asked to give personal guarantees
• the lender assesses the trust’s income, the guarantors’ income, or both
• the lender’s solicitors may review the trust deed before the loan can settle

The answer to “can I get a home loan in a trust?” is often yes, but only with lenders whose policy accepts that type of trust, and usually with more documents than a personal loan.

What is a trust home loan?

People search for this in a few ways, such as “trust home loan”, “home loan in trust” or “mortgage in a trust”. They usually mean the same thing: a residential property loan where the trustee of a trust is the borrower.

A trust home loan is not a separate loan product at most lenders. It is a standard residential or investment loan written to a non-individual borrower, with extra checks on the trust structure. Some non-bank lenders do have specific products for trust and company borrowers.

What types of trusts may lenders consider?

The four types most often discussed for property are:

Other trusts, such as bare trusts, testamentary trusts and charitable trusts, come up less often and are usually assessed case by case, if at all.

Family or discretionary trusts

A family trust is the everyday name for a discretionary trust set up to hold assets for a family group. Lenders that accept trusts most commonly accept this type. Our detailed guide covers how a family trust home loan is assessed, including trust income, distributions and the vesting date.

Related research: Can You Get a Home Loan in a Family Trust?

Unit trusts

A unit trust is often used when unrelated people or entities invest together, because each unit holder’s share is fixed. Lenders usually want to know who holds the units and may ask each unit holder to guarantee the loan.

Related research: Can a Unit Trust or Discretionary Trust Get a Home Loan?

Hybrid trusts

A hybrid trust mixes fixed and discretionary features, so the lender has to understand who is entitled to what. Fewer lenders accept hybrid trusts, and some say so directly in their policy. A separate, more detailed hybrid trust guide is in preparation and will be linked here once live.

SMSF trusts

An SMSF is a trust, but lending to it follows super law. The SMSF can borrow only under a limited recourse borrowing arrangement, where the property is held by a separate bare trustee until the loan is repaid. This is a specialist area with its own lenders and rules.

Related research: Can You Get a Home Loan Through an SMSF?

Who is the borrower in a trust home loan?

The borrower is the trustee. That can be:

• an individual trustee, where one or more people act as trustee in their own names; or
• a corporate trustee, where a company acts as trustee and its directors manage the trust.

Some lenders accept either. Others accept only a corporate trustee. The loan documents name the trustee “as trustee for” the trust, and the contract of sale usually needs to be in the same name. Getting the purchaser name wrong on the contract is one of the most common causes of delay.

How do lender policies differ on trust home loans?

We reviewed policy summaries for 40 Australian lenders (a mix of banks and non-banks) from a third-party broker policy tool, as at October 2026. This is a research sample of 40 lenders, not the whole market.

Lender wording on trust borrowers varies a lot. Some lenders accept family, unit and hybrid trusts, some accept only discretionary trusts, and some do not lend to trusts at all:

• CBA lists non-trading family, unit and hybrid trusts among acceptable borrowers, with individual or non-trading company trustees. Its wording also says non-individual borrowers must already have an existing lending facility with CommBank.
• Bluestone says discretionary, unit or family trusts are permitted, and the loan must be in the name of the trustee in its own right and as trustee.
• Thinktank permits family, discretionary and unit trusts, and says hybrid trusts, testamentary trusts and some corporate unit trusts can be considered case by case. A certified copy of the trust deed is required.
• AMP accepts unit and discretionary trusts formed in Australia, with the loan in the name of the trustee, and requires adult beneficiaries to give a consent and indemnity.
• Athena accepts non-trading discretionary, family and unit trusts only, and the trustee must be a company.
• Resimac accepts discretionary trusts but not unit or hybrid trusts.
• St.George and Westpac limit trust lending to discretionary, family or unit trusts, and say the trust must not relate to an SMSF.
• ING says loans to companies or trusts are unacceptable, Newcastle Permanent says trusts are no longer acceptable borrowers for all lending, and Zeus says individuals applying as trustee of a trust are not eligible.

For SMSF loans, 17 of the 40 lenders in our sample say in their wording that they do not accept SMSF applications or do not offer SMSF products, including ANZ, CBA, NAB, Westpac, St.George, ING and Bankwest. Lenders that do, such as Bluestone, Resimac and Thinktank, generally treat SMSF lending as a separate product with its own LVR and loan-size limits.

These are examples of how differently lenders approach the same situation. These examples are not recommendations, and policy must be confirmed before an application is lodged. Policies change often, so confirm the current position with a broker before you apply.

Policy summary as at October 2026, from a third-party broker policy tool (export dated 20 October 2026). The lender guides behind it are dated between April 2026 and October 2026 for the lenders named on this page. The sample counts on this page cover all 40 lenders, whose guides are dated between October 2025 and October 2026. For example, CBA's guide is dated 7 July 2026. Lender policies change often and may have changed since.

Can a trust borrow money to buy property?

Yes, a trust can borrow to buy property if the trust deed gives the trustee the power to borrow and to grant a mortgage, and if a lender’s policy accepts that type of trust. The trustee borrows, not the trust or the beneficiaries.

Lenders usually check:

• that the trust deed allows borrowing and charging trust assets
• that the trustee named on the contract matches the trustee on the deed
• any deed of variation, change of trustee or change of appointor
• the vesting date, which is when the trust is due to end
• whether the trust is trading (running a business) or non-trading (holding investments)
• who will guarantee the loan

Some lenders accept only non-trading trusts, meaning trusts that hold passive investments such as property rather than running a business. Wave Money, for example, lends to Australian registered companies and trusts with non-trading passive income only.

Who has to guarantee a trust home loan?

Lenders that accept trusts usually ask the people behind the trust to guarantee the loan personally. This commonly includes:

• directors of a corporate trustee
• individual trustees
• unit holders of a unit trust, particularly major unit holders
• adult beneficiaries, at some lenders, or the main beneficiaries whose income is used

Gateway’s wording, for example, says personal guarantees are required from directors and unit holders of unit trusts. A personal guarantee means the guarantor can be liable for the debt if the trust does not repay it. This is why many lenders ask guarantors to get legal advice before signing.

How do lenders assess trust income?

Lenders look at whether the trust can support the loan on its own, whether the guarantors can, or a mix of both. Gateway’s wording, for example, says it is typically preferable that the trust is self-supporting, but serviceability support can be sought from the trustee, director or beneficiary.

Lenders commonly ask for:

• the trust’s tax returns and financial statements, often for two years
• the individual tax returns of the guarantors or beneficiaries
• evidence of rent received on trust-owned property
• details of distributions to beneficiaries
• details of any loans between the trust, related companies and individuals

Distributions from a discretionary trust can change from year to year, so lenders take care not to count the same income twice, once in the trust and again in a beneficiary’s return.

Can a trust buy a home to live in?

Sometimes. Most trust loans are for investment property, but some lenders can consider an owner-occupied loan to a trust where a beneficiary lives in the property. CBA’s wording, for example, says an owner-occupied home loan may be offered to trust borrowers where the trustee will not claim rental income, tax deductibility or negative gearing.

Living in a trust-owned home can have tax and duty consequences that are separate from the loan. Those are questions for an accountant or lawyer, not a lender.

How much deposit do you need for a trust home loan?

Trust loans often have lower maximum LVRs than personal loans, and lenders mortgage insurance may be limited for non-individual borrowers. A deposit of 20% or more widens the number of lenders that may consider the loan, but the exact limits depend on the lender, the trust type, the property and the location.

SMSF loans often need a larger deposit again. Several SMSF products in our sample cap residential lending at 80% LVR, such as Bluestone and Thinktank.

What documents do you need for a trust home loan?

• a certified copy of the full trust deed and every deed of variation
• company documents for a corporate trustee, such as an ASIC company extract
• identification for trustees, directors, guarantors and, at some lenders, beneficiaries or unit holders
• trust and personal tax returns and financial statements
• a unit register for a unit trust
• a trustee resolution to borrow, where the lender asks for one
• the contract of sale in the trustee’s name as trustee

10 common mistakes with trust home loans

1. Signing the contract in a personal name when the trust is meant to buy.
2. Assuming every lender accepts trusts.
3. Assuming a hybrid trust is treated the same as a family trust.
4. Not checking that the trust deed allows borrowing and mortgages.
5. Missing deeds of variation or change-of-trustee documents.
6. Forgetting the vesting date.
7. Not expecting directors, unit holders or beneficiaries to guarantee the loan.
8. Counting trust distributions twice in the income figures.
9. Planning to live in a trust-owned home without tax and duty advice.
10. Treating an SMSF purchase like a normal trust purchase.

How to improve your chances before applying

• Get a certified copy of the complete trust deed and all variations ready early.
• Confirm whether the trust is family, unit, hybrid or SMSF before approaching a lender.
• Check the purchaser name before signing a contract.
• Check that the trust and guarantor tax returns are lodged and up to date.
• Lenders often ask every director or major unit holder to guarantee the loan.
• Ask the trust’s accountant about tax and duty before buying.
• Allow extra time for the lender’s legal review of the deed.

Example scenarios

Scenario 1: Family trust buying an investment unit

A family trust with a corporate trustee buys an investment unit. The two directors are also the main beneficiaries. Several lenders in our sample may consider this, with both directors as guarantors and the trust’s rent and their incomes assessed together.

Scenario 2: Unit trust with three unrelated unit holders

Three friends hold units in a unit trust that is buying a duplex. Lenders that accept unit trusts may ask all three to guarantee the loan and may want each person’s income and credit history.

Scenario 3: Hybrid trust

A hybrid trust is buying an investment house. Some lenders that accept family and unit trusts do not accept hybrid trusts, so the choice of lender narrows. Others may consider it case by case after reviewing the deed.

Scenario 4: SMSF buying residential property

An SMSF wants to buy a residential investment property. This is not a standard trust loan. It needs an SMSF lender, a limited recourse borrowing arrangement and a bare trust, and many major lenders in our sample do not offer it.

So, how do trust home loans work in Australia?

A trust home loan is a loan to the trustee, secured by property held for the trust, and usually supported by personal guarantees from the people behind it.

The strongest trust applications usually have:

• a trust type the lender accepts
• a complete, current trust deed that allows borrowing
• the right purchaser name on the contract
• lodged trust and personal tax returns
• guarantors with income and clean credit
• a deposit that suits the lower LVR limits that often apply to trusts

Need help with a trust home loan?

A Fundd mortgage broker can help you compare options and check whether current lender policies may suit your trust structure. We can review your trust deed, trustee details and income with you before you apply.