How lending works for property held in a discretionary family trust — guarantees, serviceability and lender choice. General information, not legal or tax advice.
9 June 2026 · By Foundation Finance · Last reviewed 10 June 2026
What we can — and can’t — advise on
Foundation Finance operates as a credit representative under an Australian Credit Licence. We can advise on the credit product — the loan itself, how it’s structured, and which lenders suit your situation. Whether a self-managed super fund, trust or company structure is right for you is financial product, tax and legal advice, which sits with your licensed financial adviser, accountant or solicitor. This page covers the credit side only.
A discretionary (family) trust is a common way to hold investment property. Borrowing through one is well-trodden ground for the right lender. Here's a general overview of the finance side — not legal or tax advice.
How lenders treat a family trust loan
The trustee borrows on behalf of the trust (often a corporate trustee — a company acting as trustee).
Lenders typically require guarantees from the directors of the corporate trustee, and sometimes from adult beneficiaries.
Serviceability is assessed using the trust's income and the guarantors' positions.
Lender choice matters — policies vary widely; some lenders are comfortable with trusts, others aren't.
What you'll generally need
The trust deed and (if applicable) the corporate trustee details.
Identification and financials for the trustee/guarantors.
Your accountant and solicitor to confirm the structure is set up correctly.
Costs
There can be a small rate uplift and fewer lenders competing — try our trust/company loan cost calculator for an indicative figure.
The boundary
We arrange the loan and know which lenders suit family-trust borrowers. Whether a discretionary trust is right for your asset-protection, tax or estate-planning goals is a matter for your accountant and solicitor. See trust & company property lending or talk to us.
Who handles what
Getting it right usually means a small team. Here’s who does which part — we’ll gladly work alongside your other professionals.
Us (Foundation Finance)
The loan — structure, features, lender selection, serviceability and the application.
Licensed financial adviser (AFSL)
Whether an SMSF or investing via super suits you, and any financial-product advice.
Registered tax agent / accountant
Your tax position — negative gearing, deductions and CGT for your circumstances.
Solicitor
Legal structures, trust deeds, contracts and asset protection.
Quantity surveyor
An ATO-compliant tax depreciation schedule for your property.
General advice warning: The information on this page is general in nature and factual only. It does not take into account your objectives, financial situation or needs, and is not financial product, tax, credit or legal advice. Tax, superannuation and SMSF outcomes depend on your circumstances — speak to a registered tax agent and a licensed financial adviser before acting. Any estimates or calculator results are indicative only and not an offer of credit, a quote, or a guarantee of approval or savings.
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