Trust Structure Finance
Invest Smarter.
Structure Smarter with Trusts...
Purchasing investment property inside a family discretionary trust is one of the most powerful wealth-building strategies available to Australian investors — but it demands a specialist broker who understands the landscape. That's exactly what we do.
Trust Structure Property Lending — What You Need to Know in 2026
- ✦ In 2026, most Australian lenders cap trust investment property lending at 80% LVR — though select specialist lenders can extend to 90% in certain circumstances, subject to trust deed and income profile.
- ✦ Negative gearing losses from a trust-held investment property cannot be distributed to individual beneficiaries — they are trapped within the trust and can only offset future trust income.
- ✦ Properties owned by trusts in NSW and Victoria do not qualify for the land tax-free threshold that applies to individual ownership — your accountant should model this cost before acquisition.
- ✦ The trust lending landscape shifted significantly in late 2025, with several major lenders tightening their policies — working with a specialist broker ensures your application reaches the right institution.
Not Every Broker Can Navigate Trust Lending.
Australia's trust lending market is complex. Policy varies dramatically between lenders, with some rejecting trust applications outright and others offering residential-equivalent rates. At Tenfold, we know which lenders operate in this space, what they require, and how to position your application for approval — at terms that protect your long-term portfolio trajectory.
Why Clients Choose to Borrow
Inside a Trust Structure
There are compelling strategic and financial reasons to hold investment property in a trust. Here are the six most significant.
Asset Protection
Property held in a trust is not personally owned by any beneficiary. This means the asset sits outside your personal estate and is generally shielded from creditors, litigation, bankruptcy proceedings, and relationship property claims. For business owners, professionals, and high-net-worth individuals, this structural separation is invaluable.
Income Distribution Flexibility
A discretionary trust gives the trustee the power to distribute rental income and capital gains to beneficiaries in the most tax-effective manner each financial year. By directing income to beneficiaries on lower marginal tax rates — such as adult children, a spouse, or a corporate beneficiary — you can significantly reduce the household's overall tax burden.
Multigenerational Wealth Planning
A trust can operate for up to 80 years under Australian law, allowing family wealth to compound across multiple generations without triggering a formal transfer of ownership. Unlike assets you hold personally, trust property does not form part of your deceased estate, bypassing the probate process and ensuring continuity of control through the trust deed.
CGT Discount Access
When an investment property held in a trust is sold after 12 months, the trust can access the 50% capital gains tax discount — the same concession available to individual investors. In some structures, the discount can be flowed through to individual beneficiaries, maximising post-tax proceeds and preserving more capital for reinvestment.
Portfolio Scalability
Holding properties in a trust structure can, in certain circumstances, provide greater flexibility as your portfolio grows. By separating assets at the structure level, investors can limit cross-collateralisation risks, manage debt at the entity level, and position for future borrowing capacity across multiple properties with different lender relationships.
Privacy & Confidentiality
Property held in a trust is registered in the name of the trustee — not an individual — which can provide a degree of privacy around personal asset holdings. This can be particularly relevant for high-profile individuals, business owners, or anyone seeking to separate their personal profile from their investment portfolio.
From Structure to Settlement.
We Handle the Complexity.
Four steps from initial strategy session to funded investment — tailored for trust borrowers.
Strategy & Structure Review
We analyse your trust deed, trustee structure, and borrowing objectives to confirm lender eligibility and identify the optimal loan architecture.
Lender Selection
We shortlist lenders whose current trust lending policies match your structure, LVR, and income profile — ensuring residential-equivalent rates where possible.
Application & Approval
We prepare a complete, lender-ready application including trust deed review, entity financials, and guarantor documentation to drive a clean, efficient approval.
Settlement & Annual Audit
Once settled, we don't disappear. Our annual portfolio audit reviews your trust lending structure to ensure it continues to serve your growth strategy.
Important Considerations for
Trust Lending
Trust structure lending is more complex than borrowing in a personal name. Understanding the landscape helps you plan ahead and avoid surprises.
- LVR typically capped at 80%. Most lenders will lend up to 80% of the property's value for trust borrowers, without LMI. Some specialist lenders can extend to 90% in certain circumstances — we identify those options for you.
- Personal guarantees are required. Lenders will generally require the adult beneficiaries of the trust — and often the trustee directors — to personally guarantee the loan. This is standard practice across virtually all trust lending scenarios.
- Trust deed must permit borrowing. Before applying, we review your trust deed to confirm the trustee has the power to borrow funds and grant security. If the deed requires amendment, we'll flag this early in the process.
- Negative gearing losses are trapped. Unlike personal ownership, losses from a negatively geared property held in a trust cannot be distributed to individual beneficiaries. They remain within the trust to offset future income. This is a material consideration for your investment strategy.
- Land tax thresholds may not apply. In NSW and Victoria, properties owned by trusts generally do not qualify for the land tax-free threshold that applies to individual ownership. Your accountant should model the ongoing land tax cost as part of your acquisition strategy.
- Lender policy changes frequently. The trust lending landscape shifted significantly in late 2025, with several major institutions tightening or pausing their trust loan policies. Working with Tenfold ensures you always have access to the current lender panel — not yesterday's information.
Access to Lenders Who
Understand Trusts
We maintain active relationships with every Australian lender that currently accepts investment property applications in a trust structure — so you're never left searching in the dark.
Lender trust lending policies change regularly. The panel above reflects lenders currently active in the trust investment lending space. Tenfold maintains up-to-date lender intelligence so your application goes to the right lender every time.
Trust Lending — Answered.
Can any type of trust borrow to purchase investment property?
Most lenders that operate in this space will consider discretionary (family) trusts and unit trusts. Hybrid trusts and testamentary trusts are accepted by fewer lenders. Bare trusts used in SMSF structures have their own specific lending framework. We assess your trust type and match it with lenders whose policies align.
Will I pay a higher interest rate because I'm borrowing in a trust?
Not necessarily. Lenders who have a clear trust lending policy typically offer residential-equivalent investment rates. The risk is when your application is pushed through a commercial lending division — where rates can be 1–2% higher. At Tenfold, we ensure your application lands with the right team at the right lender to protect your rate.
How much deposit do I need when borrowing through a trust?
The standard requirement for trust investment property loans is a 20% deposit (80% LVR). Some lenders can extend to 90% LVR for trusts, but the pool of lenders at that level is smaller and requires careful navigation. Your trust deed and income profile also factor into the maximum LVR you can achieve.
Does the trust need to have been operating for a certain period?
Freshly established trusts are accepted by many lenders, provided the trust deed is in order and the guarantors can demonstrate sufficient income and assets. Some lenders prefer trusts with an existing operating history. We factor this into our lender selection process from the outset.
Do I need an accountant or solicitor before applying?
We strongly recommend working alongside both. Your accountant should confirm the trust structure is appropriate for your investment strategy (particularly regarding land tax and negative gearing), and a solicitor should review the trust deed for borrowing powers. Tenfold coordinates with your advisers to ensure the lending strategy aligns with the broader structure.
Steven Rider is the founder of Tenfold and a rare multi-disciplinary expert who holds both CA and CPA designations alongside a full mortgage broking licence. With over 25 years advising Australian property investors, he brings together tax strategy, portfolio structuring, and specialist finance in a single integrated service — the kind of holistic advice that most accountants and brokers simply cannot offer alone.
Your Trust Structure Deserves
Expert Finance.
Don't risk your trust application with a generalist broker. Book a strategy session with Tenfold and get a clear picture of your borrowing capacity, lender options, and structure optimisation.