Can Company Trusts Borrow Money in Australia?

3 min read

May 12, 2026 10:45:00 AM

There are alternative options available even though traditional lenders have tightened policies around company and trust structures.

Over the past 12 months, many Australian investors and business owners have noticed a shift in how traditional lenders assess company and trust borrowing structures.

For borrowers using more sophisticated setups, getting approved is no longer as straightforward as it once was.

Trust structures, company borrowers, multiple income streams and self-employed income are now facing greater scrutiny across parts of the market. Some lenders have tightened servicing calculations, reduced flexibility around income verification or changed how they assess risk for entity borrowers altogether.

But importantly, this does not mean options have disappeared.

For many Australians, there are still pathways available that continue to support more complex borrowing structures.

Why Company and Trust Structures Are Becoming More Common

As more Australians build businesses, invest in property or manage multiple income streams, traditional personal borrowing structures are no longer always the best fit.

A company and trust structure may be used for a range of reasons, including:

Asset protection
Long-term investment planning
Tax planning considerations
Portfolio scalability
Succession and estate planning

According to the Australian Bureau of Statistics, self-employment and small business ownership continue to represent a significant part of the Australian economy, with many Australians earning income outside traditional PAYG employment structures.

As a result, company and trust entities are becoming increasingly common among investors and business owners.

Why Traditional Lenders Are Tightening Policies

The lending environment has shifted significantly since interest rates began rising across Australia.

As rates increased, lenders reassessed:

Borrowing risk
Debt servicing capacity
Portfolio exposure

Recent industry reporting has highlighted that several major institutions have tightened trust lending requirements or adjusted servicing policies for entity borrowers.

In many cases this has resulted in:

Lower borrowing capacity
Additional documentation requirements
More restrictive servicing calculations

For borrowers relying on trust income, business cash flow or multiple entities, this can create additional hurdles during the approval process.

What Options May Still Be Available?

While some lenders have become more restrictive, there are still pathways that continue to support more sophisticated borrowing structures.

Depending on the scenario, this may include:

Lending for company and trust entities
Alternative income verification options
Flexible servicing approaches
Competitive LVR options for eligible borrowers
Investor lending structures designed for portfolio growth

For some borrowers, income may also be assessed using alternative forms of verification such as:

Business Activity Statements (BAS)
Accountant declarations
Business bank statements
Profit and loss summaries

This can help provide a broader understanding of how a business or investment structure operates beyond standard PAYG income models.

You can explore more about purchasing and borrowing structures with Rate Money here:

https://ratemoney.com.au/residential-loans

Why Structure and Strategy Need to Work Together

One of the biggest misconceptions in property investing is that the structure itself creates the outcome.

In reality, structure should support strategy, not replace it.

Whether purchasing personally, through a company or via a trust, the fundamentals still matter:

Cash flow
Servicing capacity
Long-term goals
Holding ability during changing market conditions

This is particularly important as interest rates and lending policies continue to evolve.

For many investors, the conversation is shifting from:

"Can I buy?"

to:

"How should this be structured for the next decade?"

Why Specialist Support Matters More in 2026

As company and trust lending becomes more specialised, understanding lender policy and servicing models has become increasingly important.

Different lenders assess:

Trust income
Distributed earnings
Company profits
Director guarantees
Existing portfolio exposure

very differently.

What may work with one lender may not align with another lender's policy at all.

That is why many investors and business owners are now spending more time reviewing:

Borrowing structures
Future portfolio plans
Long-term flexibility
Funding scalability

before making their next purchase.

The Bottom Line

Traditional lenders may be tightening policies around company and trust structures, but options still exist for borrowers using more sophisticated setups.

The key is understanding:

How your structure is viewed
How your income is assessed
Which policies align with your scenario
Whether your strategy supports your long-term goals

As the market continues to evolve, structure and funding strategy are becoming just as important as the property purchase itself.

Want to Understand What Options May Still Be Available?

If you are using a company or trust structure, or considering one for future investment plans, it may help to understand how your current setup aligns with today's lending environment.

The team at Rate Money works with self employed Australians, investors and business owners every day to help unpack more complex borrowing scenarios and explore what may still be possible.

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