Commercial Finance
Can You Buy Commercial Property In A Trust?
5 min read- Finance Guide
- Updated 2026
Quick answer
Yes, often
60% to 80%
Typical commercial LVR range depending on the deal
- Trust borrowing possible Yes
- Trust deed review Usually required
- Guarantees Often required
- Structure matters Very important
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1300 421 044
Commercial trust borrowing is usually assessed using two main factors
The property and loan to value ratio
The lender will still assess the property in the usual way, including value, risk profile and the maximum LVR it is prepared to offer.
PROPERTY-BASED LIMIT
The trust structure and guarantor strength
Lenders commonly assess the trustee entity, trust deed, beneficiaries, and the people providing guarantees to confirm the loan can be supported.
STRUCTURE-BASED LIMITCommercial trust borrowing by scenario
Lenders often look at both the trust structure and the underlying property
-
Simple trust with strong guarantors and standard commercial property Often easier
-
Trust with investment property and lease income Common
-
Complex or unusual trust structures More lender caution
For example, if a trust purchases a commercial property worth $1,000,000 and the lender allows a 70% LVR, the loan may be approximately $700,000 with the balance contributed as deposit or equity.
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What Lenders Review In A Trust Borrowing Structure
Lenders commonly review the trust and the people behind it. They typically look at:
The trust deed- The trustee
structure
- Beneficiaries and
related entities
- Income and financial
strength
- Guarantees from key
parties
A well structured trust with strong supporting parties may be easier to finance.
Property Income And Lease Strength
If the commercial property is leased, lenders may also consider the rental income. Important factors include:
Lease
length- Tenant
strength
- Rental income
compared to loan repayments
Properties with stronger lease income can help support the trust borrowing application.
Common Trust Borrowing Structures
Commercial property can be held under different trust arrangements.
Common scenarios include:
Family Trust
Common ownership structure
Often used for asset holding
Unit Trust
Multiple interest holders
Can suit shared investment structures
Corporate Trustee Structure
Often preferred
Common in commercial ownership setups
Each lender has its own policy for trust borrowing and acceptable structures.
Common problems borrowers face
Trust borrowing can be more complex than standard borrowing because lenders need to assess both the structure and the people behind it
Trust Deed Issues
If the trust deed does not clearly allow borrowing or property ownership, lenders may have concerns
Possible solutions include:
-
Reviewing the
trust deed early
-
Confirming the
trustee has the right powers
-
Using advisers
to clean up the structure
Guarantee Requirements
Many lenders will still require personal guarantees even if the property is being purchased in a trust
This is common in commercial trust borrowing
The strength of guarantors can materially affect approval
Complex Ownership Structures
More complicated trust arrangements can reduce lender appetite or slow down the process
Simpler structures are generally easier for lenders to assess
Applying With The Wrong Lender
Different lenders have very different policies on trust borrowing and guarantees
Using lenders experienced in trust commercial property finance can improve approval chances.
Steps to get Commercial Property Finance in a Trust
Step
01
Confirm the trust structure and review the trust deed.
Step
02
Determine how much deposit or equity will be contributed.
Step
03
Prepare trust documents, financials and guarantor information.
Step
04
Confirm the property details and any lease or rental income support.
Step
05
Submit the application to lenders that understand trust borrowing.
Step
06
Once approved, the loan settles and the trust completes the property purchase.
Speak with a Development Finance Specialist
Commercial property finance in a trust can vary significantly depending on the property, the trust structure, guarantors, and the lender's policy.
A specialist can review your trust borrowing scenario and help determine which lenders may be able to fund it.
Speak with a finance specialist about your trust borrowing scenario.
Submit the short form below and a finance specialist will review your project and discuss possible funding options.
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