Property loans for trusts and companiesRight structure. Right lender.

Who signs for what

When a trust or company buys property, the trust (through its trustee) or the company is the borrower. Lenders usually also ask the directors of the company or corporate trustee to sign personal guarantees, so you're still personally responsible if the loan isn't repaid.

Sometimes it works the other way: an individual borrows and a company or trust guarantees the loan, or offers its property as extra security. Each set-up changes how lenders assess the deal, so we map who is borrowing, who is guaranteeing and whose property secures what, before an application goes in.

Not every lender is set up for it

Some lenders are comfortable with trusts and companies, others restrict them or price them differently. Some won't lend to certain trust types, some limit cash out to trusts, and some have tighter rules on which entity can own which property. That's why the lender choice for a trust or company purchase matters even more than for a loan in your own name.

We check current lender policy for your exact structure before recommending anyone.

Servicing for entities

• Lenders look at the trust's or company's own income, usually from its financial statements and tax returns.
• Many also look at the people behind it: their personal income, and the distributions or wages they receive from the entity.
• Some lenders assess the entity's position and the individuals' position together, which can help or hurt depending on how income flows between them.
• Existing loans in the entity and in your own name all count, so we gather the full picture before testing anything.

Typical documents

• The trust deed and any variations, or the company's registration details.
• The most recent two years of financial statements and tax returns for the entity, and personal tax returns for the directors.
• Details of existing loans, properties and leases held by the entity.
• Your accountant's contact details. Lenders sometimes ask for a letter from them, and we may need to check details with them.
• We send a full checklist through a secure online portal once you're ready to apply.

We arrange finance, not structures

Whether you should buy in a trust, a company or your own name is a tax and legal decision. It affects land tax, capital gains, asset protection and who can claim deductions. Magnus Finance doesn't advise on which structure to use. Your accountant does. We make sure the finance works for the structure they recommend, and that it doesn't block your next purchase.

Can I get a home loan in a trust's name?

Yes, many lenders lend to trusts, usually with a corporate trustee and personal guarantees from its directors. Lender policy varies a lot, so the right lender depends on your trust type and plans.

Do I have to personally guarantee a company or trust loan?

Usually, yes. Most lenders ask the directors of the borrowing company or corporate trustee to give personal guarantees.

Is it harder to borrow in a trust or company?

It can take more documents and narrows the lenders available, but it isn't necessarily harder. The key is matching the structure with a lender whose policy suits it.

Should I buy in a trust or my own name?

That's a tax and legal question for your accountant. Magnus Finance arranges finance to suit the structure they recommend.

What does Magnus Finance charge?

In most cases there is no direct cost to you. Magnus Finance is paid a commission by the lender you choose, and we disclose it before anything is signed.