Trust Investment Property Purchase Palm Beach

Brokering a loan through a Trust for an off-the-plan property loan 

Mortar Finance recently assisted a self-employed client in securing funding for her first investment property, a turnkey, off-the-plan purchase in Palm Beach on the Gold Coast, Queensland. This case highlights the importance of strategic structuring, lender selection, and collaboration with key stakeholders when navigating complex lending scenarios involving trusts and self-employed borrowers.

Client Requirements

The client approached Mortar Finance seeking a loan of $877,274 to fund the purchase of a new turnkey investment property. As a first-time investor, she was keen to enter the property market with a low-maintenance, ready-to-rent asset in a high-demand coastal location.

Being self-employed, the client’s financial position required careful presentation to lenders. In addition, she wanted to structure the purchase under a trust for asset protection purposes, an increasingly common strategy among business owners looking to separate personal and investment assets.

The client had a strong financial foundation, with a 20% cash deposit already saved. However, she required expert guidance to ensure the lending structure aligned with both her long-term investment goals and her current business situation.

The Challenge

This scenario presented a few complexities:

• The borrower was self-employed, meaning lenders would scrutinise her income more closely than a PAYG applicant.
• The loan needed to be structured under a trust, which can limit lender options and require additional documentation.
• The property was off-the-plan, introducing construction timelines and staged funding considerations.
• As a first-time investor, the client required a clear, manageable repayment structure to support cash flow during and after construction.

Mortar Finance needed to identify a lender that could accommodate all of these factors while still offering competitive terms and a smooth approval process.

The Solution

After assessing the client’s financial position and objectives, Mortar Finance recommended placing the loan with NAB (National Australia Bank). NAB was selected due to its ability to take a “whole of wallet” approach, considering the client’s broader financial situation, including her business income and future rental income from the investment property.

The loan was structured strategically to support the client throughout the construction and ownership phases:

• Interest-Only Period: The facility was set up with a two-year interest-only term during the construction phase. This helped minimise repayments while the property was being built and not yet generating rental income.
• Principal & Interest Term: After construction, the loan transitions to principal and interest repayments over the remaining 28 years. This structure allows the client to gradually build equity while maintaining manageable repayments.
• Income Assessment: The client’s self-employed income was supported by financials from her business, combined with projected rental income from the completed property. This strengthened the overall servicing position.
• Trust Structure: The loan was established under the client’s trust, ensuring asset protection while still meeting the lender’s requirements. This involved careful coordination with legal and accounting professionals to ensure compliance.

Approval Process

A key factor in the success of this application was the strong collaboration between Mortar Finance, the client, her accountant, and the lender.

Mortar Finance worked closely with the client’s accountant to gather and present the necessary financial documentation. This included business financials, tax returns, and supporting statements that accurately reflected the client’s income position. Ensuring these documents were complete and well-structured helped streamline the lender’s assessment process.

At the same time, Mortar Finance maintained ongoing communication with the NAB banker to ensure the application progressed smoothly. Any queries or requests for additional information were addressed promptly, reducing delays and keeping the process on track.

Thanks to this proactive approach, the application experienced a smooth and efficient lodgement. There were no major lender conditions imposed, which is a strong outcome for a self-employed borrower purchasing through a trust.

The Outcome

The client successfully secured approval for the $877,274 loan and is now on track to settle her first investment property in Palm Beach. The tailored loan structure provides flexibility during construction and a clear path for long-term repayment.

By leveraging NAB’s “whole of wallet” approach and carefully structuring the facility, Mortar Finance was able to deliver a solution that aligned with the client’s financial goals and risk management strategy.

Key Takeaways

This case study demonstrates the value of working with an experienced mortgage broker when dealing with complex lending scenarios. Mortar Finance’s expertise in structuring loans for self-employed clients and trust entities ensured that all aspects of the application were handled correctly from the outset.

For investors, particularly those entering the market for the first time, having the right structure in place can make a significant difference, not just in securing approval, but in achieving long-term financial success.

Through strategic planning, strong lender relationships, and effective collaboration with professional advisors, Mortar Finance delivered a seamless outcome for the client, setting her up for a successful property investment journey.

Contact Mortar Finance for any Home lending needs.