How We Secured a Complex Trust Loan Just Days Before Settlement? - Open Mortgage Blog

Buying property under a trust structure can offer long-term benefits like asset protection, tax efficiency, and strategic financial planning — but when it comes to getting the loan approved, the process is often far from simple.

At Open Mortgage, we recently helped a client in Sydney settle an investment property purchase through a family trust with three non-family partners. The situation was challenging from the start — involving multiple borrowers, trust complexities, and a development-approved property.

Here’s how we navigated the obstacles and delivered a successful outcome, just one week before the settlement deadline.

Client Profile

Based in Sydney
Business owner with multiple tobacco retail stores
Purchasing an investment property under a newly formed family trust
Trust included 4 business partners (non-family members)
Property had development approval (DA)

🎯 Key Challenges

1. Four Partners, Four Times the Paperwork

Each partner in the trust was required to submit full income, asset, liability, and expense documentation. With each person holding other properties and business interests, this significantly increased the workload and complexity of the loan assessment.

2. Servicing Requirements for All Trustees

Many lenders required all trust members to jointly demonstrate the capacity to service the full loan amount. This meant that if even one member lacked sufficient income or supporting documents, the entire application could be declined.

3. Property with Development Approval

The chosen property had an existing DA (Development Approval). While the client's intention was to rent out the property, most lenders viewed it as a redevelopment risk and refused to proceed with finance.

With settlement just two weeks away, the clock was ticking. A delay would result in a loss of 10% deposit and potentially penalty fees.

✅ Our Tailored Solution

We quickly identified and approached a lender who could meet the specific needs of this case:

Accepted DA-approved properties
Only required financial documentation from the trustee company’s sole director (our client)
Did not require paperwork from the other three partners
Approved the loan within one week of the settlement deadline

Thanks to our client’s strong income and the trust’s clean structure, the loan was approved and the property settled on time — avoiding legal penalties and preserving the full deposit.

🎉 The Outcome

Loan approved with just days to spare
No delays or settlement issues
Client avoided breach penalties and preserved their 10% deposit
A complex trust loan was finalised with minimal stress

💡 Thinking of Buying Property in a Trust?

While trust loans offer many advantages, they’re often misunderstood and mishandled — leading to delays, rejections, or worse.

At Open Mortgage, we specialise in complex loan structures, including trust loans, company loans, and self-employed applications. Our expert brokers can help you structure your loan for success — not stress.

📍 Offices in Sydney, Brisbane, and Hobart
📞 Contact us to discuss your scenario: openmortgage.au
📅 Or book a free consultation today