Finance question
Can I get a business loan against property held in a trust?
Yes. Property held in a trust is common security for business lending, and it does not stop you borrowing against it. The trustee provides the security and the directors or beneficiaries usually give personal guarantees, then the deal is priced like any other property-backed facility.
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The short answer
A trust does not block the loan
Holding property in a family or unit trust is one of the most common ownership structures in Australian business, and lenders see it every day. The trust owns the asset, the trustee signs for it, and the property can secure a business facility the same way personally held property can.
The structure changes the paperwork, not the answer. Lenders will want to see the trust deed, confirm the trustee has the power to borrow and mortgage, and usually take personal guarantees from the directors of a corporate trustee or the key beneficiaries. Once that is in order, the deal runs on the equity in the property.
This is property-backed lending, so the terms are strong. Facilities reach the $5 to 6 million range at single-digit rates, with no financials on many deals and ATO debt workable in the background. A broker makes sure the application is presented in a way the lender's credit team can approve without friction.
Do you qualify?
What a trust-held deal needs.
Trust-owned property
Residential or commercial property held by the trust as security.
The trust deed
A deed that allows the trustee to borrow and mortgage the asset.
Personal guarantees
Directors or beneficiaries usually guarantee the facility.
Equity in the asset
The equity in the property sizes the borrowing.
Why trust-held property still works
Lenders know trusts
Family and unit trusts are standard security, not an obstacle.
Real estate secures it
The property carries the deal, so pricing stays in single digits.
Light on paperwork
Many trust-held deals settle without up-to-date financials.
A real example
A family trust owns a commercial unit worth $1.5m with a $600k loan. The trustee borrows against the roughly $900k of equity to fund a fit-out and stock, guaranteed by the two directors. Priced at a single-digit rate. Illustrative only, subject to valuation.
Common questions
Frequently asked questions
Does the trust need its own income?
Not necessarily. Many property-backed deals rely on the equity in the security rather than the trust's trading income.
Who signs the loan?
The trustee signs on behalf of the trust, and directors or beneficiaries usually provide personal guarantees.
Can a corporate trustee borrow?
Yes. A company acting as trustee is common, with the directors guaranteeing the facility.
Will the trust structure slow things down?
It adds a deed review, but with the paperwork ready it does not usually hold up a property-backed deal.