Last Updated: 22nd May, 2024

With so many lucrative investment opportunities available, many investors are now using their trusts as vehicles to invest in real estate!

Are you a property investor that is looking to borrow funds using your trust?

How much can you borrow?

It is possible to borrow money using a property investor trust if you know which lenders to apply with.

  • Investment loans: 95% of the property value.
  • Low doc (no income evidence): 60% of the property value, on a case by case basis.
  • Discounts: Competitive professional package and basic loan discounts are available.

Low doc property investment trust loans are only available from select lenders. Please discuss this with us if you require a low doc loan for your trust.

Some lenders have restrictions on lending to property investment trusts with a company as the trustee, however can accept trusts with a personal trustee.

Speak to us on 1300 889 743 or enquire online and our mortgage brokers will find the most suitable lender for your situation.

Which banks have loans for property investor trusts?

Most banks will not approve normal home loans for real estate investor trusts that take the form of a hybrid trust.

Typically, your loan will be processed as a business loan, which means you will pay higher fees, a higher rate and will not be allowed to borrow as much!

The secret to getting a low interest rate is to apply with a lender that considers PITs via their residential department.

Please call us on 1300 889 743 or enquire online to discuss your situation with one of our mortgage brokers.

Why do accountants set up trusts that can’t borrow money?

Many property investors see an accountant, pay $2,000 or $3,000 for a new trust and then start looking for property to invest in.

Unfortunately for most, they soon find out that there are few banks that will lend money to a trust!

Accountants are rarely expert mortgage brokers and simply do not know the lender guidelines for hybrid trusts used for property investment.

In particular, there are few lenders that offer property investor trust low doc loans.

Please call us on 1300 889 743 or enquire online to discuss your situation with one of our mortgage brokers, before you setup your trust.

What is a property investor trust?

Property Investor Trusts (PIT) can be any type of trust that is used to invest in real estate, however they are usually a type of hybrid discretionary trust or unit trust.

They are typically used by investors that are buying negatively geared investment properties, while those investing in positively geared properties tend to favour discretionary trusts.

Speak to a financial expert

The variations on investment trusts are endless! Please refer to your trust deed and talk to your accountant for financial advice before investing.

This way, you can make an informed decision when choosing an investment property and can maximise the tax benefits you receive.

Apply for a PIT Home Loan

Our mortgage brokers are trust specialists and can quickly work out which lenders can help and which loans would be the best suited for your situation.

Please call us on 1300 889 743 or enquire online and one of our brokers will give you a call to discuss the finance that is available for your trust.