Property Purchase
Can A Company Buy Property?
5 min read- Finance Guide
- Updated 2026
Quick answer
Many company borrowers are capped around
70% LVR
Subject to lender policy and the property type
- Typical company LVR 60 to 80%
- Director guarantees Often required
- Assessment focus Income and security
1300 421 044
1300 421 044
Detailed explained
Company borrowing can be used for some residential investment property purchases and many commercial or business related property purchases, but lender appetite varies. The lender usually takes a mortgage over the property, assesses the company and its controllers, and may rely on both company income and director support when deciding whether to approve the loan.
Company deposit and loan structure
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The company may contribute the deposit from retained earnings, cash reserves, shareholder funds, or equity released from another property
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The lender funds the remaining balance up to its approved LVR, which is often lower than for a straightforward personal home loan
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A stronger balance sheet, cleaner company structure, and lower LVR generally improve approval chances
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Directors may need to provide personal guarantees, and some lenders will want evidence of serviceability outside the company alone
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COMPANY BORROWING SNAPSHOT
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Lender funds
often 60 to 80%
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Company equity
often 20 to 40%
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Guarantee position
Directors are commonly asked to support the loan personally
How company borrowing is usually assessed
Structure
01
Confirm who will buy the property and whether the company structure suits the intended use
Financial review
02
The lender reviews company financials, director details, tax returns, liabilities and repayment capacity
Security
03
The lender reviews the property, valuation, lease profile if relevant, and acceptable LVR for that asset
Approval
04
Formal approval is issued once the company, directors, guarantees, servicing and security all meet policy
What lenders look at for company borrowers
Income
Company income, trading history, rent, and in some cases director or related entity income
Existing debts
Existing company debts, related party liabilities, director debts and other secured exposures
Living expenses and dependants
Company commitments, tax obligations, director living expenses and contingent liabilities
Deposite or equity position
Cash reserves, retained profits, shareholder funds or equity in other property
Credit conduct and repayment history
Company and director credit conduct, tax compliance and overall banking behaviour
Property type, condition and location
Property type, lease quality, zoning, condition and whether the asset suits company lending policy
APRA DTI limit — from February 2026
APRA now limits high debt-to-income mortgage lending at 6 times income or more to 20% of new lending for authorised deposit-taking institutions
Need Help With A Company Property Purchase?
From company approval to settlement
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01. After formal approval, the company signs the loan documents and the directors may also sign guarantees and supporting security documents
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02. Your solicitor or conveyancer works with the lender on settlement and company execution requirements
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03. On settlement day, the lender provides funds, ownership transfers to the company, and the mortgage is registered
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03. Settlement timing depends on the complexity of the structure, valuations, guarantee documents and legal requirements, so company deals can sometimes take longer than a simple personal purchase
Common problems with company borrowing
Company property loans can work well when the structure is clear and the deal fits lender policy. Problems usually arise when the company is newly formed, the financials are weak, the property is specialised, or the lender wants stronger support from the directors.
Weak company position
If the company has limited cash, minimal retained profits or a high LVR request, the deal may fall outside policy.
Possible solutions include:
Reduce the proposed loan amount- Use equity from another property or provide additional security
- Strengthen the position with a suitable guarantee where appropriate
- Choose a lender that understands company and entity borrowing
Guarantee or servicing issues
A deal can be declined if the company does not clearly service the debt, the directors have adverse credit, or the lender is not comfortable with the guarantee position.
Possible solutions include:
- Reduce short term debts and simplify liabilities
- Correct credit issues before applying
- Provide clearer company and director income evidence
- Restructure the deal or lower the requested amount
Property or structure issues
Some properties are harder to finance in a company because of zoning, specialised use, short lease profile, valuation shortfalls or the way the ownership structure has been set up.
Possible solutions include:
- Obtain a realistic assessment of value early
- Use a larger deposit if the valuation is low
- Select a lender suited to both the property type and borrowing entity
- Renegotiate the purchase price if needed
Steps to arrange company property finance
Step
01
Confirm the company structure, purchase purpose and likely borrowing range.
Step
02
Gather company, director and tax documents for an early assessment.
Step
03
Find a suitable property and check whether it fits company lending policy.
Step
04
Submit the full company loan application with all supporting documents.
Step
05
Complete valuation, approval, guarantee and company execution documents.
Step
06
Proceed to settlement with the company taking ownership of the property.
Speak with a Property Finance Specialist
Company borrowing can vary significantly depending on the property type, the company structure, the financial position of the borrower, and whether the directors are asked to support the deal personally.
A specialist can review the structure and help determine which lenders may be open to the deal.
Speak with a finance specialist about your company property purchase
Submit the short form below and a property finance specialist will review the structure and discuss possible funding options.
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