Buying a home through your business or in a trust: what to consider

Buying a property through a company or trust structure in Australia is possible and sometimes useful, but it's rarely the right choice for an owner-occupied home. Most lenders treat company or trust purchases as commercial or investment lending, which means higher interest rates, larger deposits (often 30 percent or more), and more complex documentation. The benefits, such as asset protection, tax planning, or business-related purchases, usually apply to investment properties, business premises, or specific tax structures, not to a primary residence. Before considering this path, speak to your accountant about tax implications and a mortgage broker about whether suitable lending is available for your situation. This is one of the most common areas where self-employed Australians make decisions that look smart on paper but cost more than expected.

This guide explains how property purchases through business and trust structures actually work, when they make sense, and the questions to ask before you decide.

This post is part of the Getting a home loan when you're self-employed guide. If you want the broader picture, start there.

I want to be honest upfront: this is one of the most common areas where I see self-employed clients make decisions that don't serve them.

Someone in their network tells them they should buy their home through a trust "for asset protection." Or through their company "so the business pays for it." Or in a self-managed super fund "for tax purposes." And without proper advice, what looks like a smart move ends up costing significantly more than it should.

Sometimes these structures are absolutely right. Often they're not. The honest answer almost always involves your accountant, a solicitor, and a mortgage broker talking together before any decision is made.

Here's what you need to know to ask the right questions.

What does it mean to buy a property through a business or trust?

In Australia, property can be owned by:

• An individual (you personally)
• Joint individuals (you and a partner, or you and a family member)
• A company (which is its own legal entity)
• A trust (with a trustee holding the property on behalf of beneficiaries)
• A self-managed super fund (SMSF)

When property is owned by anything other than you personally, the legal and tax treatment is different, and the home loan structure changes accordingly.

For a primary residence (the home you live in), the simplest and usually cheapest option is to own in your own name (or joint names) and take out a standard owner-occupied home loan. For investment properties or business-related properties, alternative structures may suit better.

Why would someone buy property through a company or trust?

The most common reasons are:

• Asset protection. Property held in certain structures can be more difficult for creditors to access if your business faces financial trouble.
• Tax planning. Trusts and companies can distribute income or capital gains in ways that may be more tax-efficient than personal ownership, depending on the structure.
• Multiple beneficiary planning. Trusts can hold property for multiple beneficiaries, useful for family business or estate planning.
• Business purpose. If the property is genuinely going to be used by your business (a shop, a warehouse, a clinic), holding it in the business entity often makes sense.
• SMSF retirement strategy. Self-managed super funds can hold investment property as part of a retirement strategy, with specific tax advantages.

These are real benefits, but they come with real costs and trade-offs. The reasons listed above almost never apply to a primary residence in a way that justifies the additional cost.

What changes when you buy through a company or trust?

Several things change, and the cost differences can be significant:

1. Loan type: Most lenders treat company or trust purchases as commercial or investment lending. This means:

Higher interest rates (often 0.5 to 1.5 percent above owner-occupied rates) Larger deposit requirements (often 30 percent or more) Different fee structures Shorter loan terms (sometimes 25 years instead of 30)

1. Documentation: The application process requires significantly more paperwork, including:

Trust deed (for trusts) Company constitution and shareholding records (for companies) Personal guarantees from directors or beneficiaries Evidence of how income flows through the structure

1. Tax treatment: You can't claim the principal residence capital gains tax exemption if the property is owned by a company or trust. Stamp duty may also differ. Some states have additional duty for foreign trusts or specific trust types.

2. Loan-to-value ratios: Lenders typically require lower LVRs for company and trust purchases, meaning you need a larger deposit.

3. Personal liability: Most lenders will require personal guarantees from directors or beneficiaries, meaning the asset protection benefit is partial at best.

When does it make sense for a self-employed person to buy this way?

In broad terms, alternative structures make sense when:

• The property is genuinely commercial or investment, not a primary residence
• The asset protection benefit is real (you have a high-risk business and have already received specific advice on the structure)
• The tax benefits have been modelled by an accountant and clearly outweigh the additional costs
• The long-term plan for the property involves multiple beneficiaries, estate planning, or business succession

It rarely makes sense for an owner-occupied family home, because:

• You lose the principal residence capital gains tax exemption
• You pay more in interest, fees, and potentially stamp duty
• The asset protection is usually compromised by personal guarantees
• The tax benefits typically don't apply to owner-occupied property

What about Self-Managed Super Funds (SMSFs)?

Buying property through an SMSF is its own area of specialist advice and is strictly regulated.

You cannot live in a property owned by your SMSF. You cannot rent it from your own SMSF. The property has to be an investment, with arm's-length tenants, used solely for investment purposes.

SMSF property purchases require:

• A properly structured SMSF (which requires set-up and ongoing accounting costs)
• A specific type of loan called a Limited Recourse Borrowing Arrangement
• Usually a 30 to 35 percent deposit
• Higher interest rates than standard investment loans
• Strict compliance with super law

This is well outside what a mortgage broker can advise on. If you're considering this, the conversation starts with an SMSF specialist financial adviser, not a broker.

What questions should I ask before deciding?

If you're considering buying property through any kind of structure, the conversations are:

With your accountant:

• What are the tax implications across the life of the property, not just at purchase?
• How does this structure affect my personal tax position?
• What are the ongoing compliance costs (accounting fees, ASIC fees, audit requirements)?
• What happens if I want to change the structure later?
• What happens to the property when the business is sold or I retire?

With a solicitor:

• Is the structure genuinely providing the asset protection I'm seeking?
• How does this affect my will and estate planning?
• What are the personal guarantee implications?
• Are there family law implications (especially around separation)?

With a mortgage broker:

• Which lenders will actually lend to this structure?
• What's the rate and deposit difference compared to personal ownership?
• How does this affect my future borrowing capacity?
• What's the realistic loan-to-value ratio?

If anyone in the chain (broker, accountant, solicitor) can't give you clear answers, get a second opinion. The cost of advice now is significantly less than the cost of a poorly structured purchase.

Frequently asked questions

Can I buy my owner-occupied home through my company?

Technically yes, but it's almost always a bad idea. You lose the principal residence capital gains tax exemption, you pay higher interest rates and fees, and you typically need a larger deposit. Most accountants will advise against it for an owner-occupied home. Investment property or commercial property is a different conversation.

What's the difference between buying property in a trust versus a company?

Trusts and companies are different legal structures with different tax treatments. A trust generally distributes income and capital gains to beneficiaries each year, with tax assessed at the beneficiary level. A company holds the property as an asset and pays tax at company rates on income and gains. The right choice depends on your specific tax position, beneficiaries, and long-term plan. This is accountant territory, not mortgage broker territory.

Will I get a worse home loan rate buying through a trust or company?

Yes, generally. Loans for company or trust purchases are typically priced as commercial or investment lending, with rates 0.5 to 1.5 percent higher than equivalent owner-occupied loans. Deposit requirements are also usually larger, often 30 percent or more.

Do I need personal guarantees if I'm buying through a company?

In almost all cases, yes. Lenders require personal guarantees from company directors or trust beneficiaries when lending to a corporate or trust entity. This means the asset protection benefit you might be seeking is partially undermined, as you're still personally liable for the loan.

Get the advice first, structure second

The most expensive mistakes I see in this area are ones that could have been avoided with a 30-minute conversation with the right professional before any paperwork was signed.

There's nothing wrong with using sophisticated structures when they suit you. There's a lot wrong with using sophisticated structures because someone told you that's what successful business owners do.

The right structure is the one that genuinely serves your specific tax position, asset protection needs, business plans, and long-term goals. Working that out properly takes time and money upfront. It also saves significant amounts of both later.

If you're considering buying property through any non-standard structure, get the accountant's advice first, then the solicitor's, then the mortgage broker's. Each one tells you something the others can't.

If you want a private, free space to start understanding your financial position, that's exactly what Runa was built for. No sales pitch, no broker calls.

Sign up free at runaapp.com.au

If you'd like a confidential, no-obligation conversation about whether your situation makes alternative structures worth considering, I'm here. I'll be honest about whether it's worth pursuing further with an accountant.

Book a confidential conversation at matildatreefinance.com.au You may also find these helpful

• Getting a home loan when you're self-employed: what lenders actually want to see
• Add-backs explained: how lenders actually calculate self-employed income
• Low-doc and alt-doc home loans in Australia: what they are and who they're for

Sources and references

This post is primarily based on Rielle's professional experience as a mortgage broker. The following sources are relevant to topics covered:

• Australian Taxation Office on trusts: ato.gov.au/general/trusts
• Australian Taxation Office on companies and small business: ato.gov.au/business

This article is general information only and does not constitute financial, legal or tax advice. Please speak to a licensed financial adviser, solicitor and your superannuation fund about your specific circumstances.

Rielle Berglund is a mortgage broker and the founder of Matilda Tree Finance. She works with Australian women navigating major financial transitions, including separation, divorce, terminal illness and bereavement. She is also the creator of Runa, a free financial literacy app built for exactly this stage of life.

Book a confidential conversation with Rielle at matildatreefinance.com.au or start with Runa, free, at runaapp.com.au.