Can My Trust Lend to Me and Hold the Mortgage on My Property?

 Author: NikkiATO(Community Moderator)Community Moderator

21 May 2026

Hi @jjc_jjc,

It depends – arrangements like this don’t have a single set tax outcome and are assessed based on the specific facts.

A trust (through a corporate trustee) can lend money and hold a mortgage. However, this doesn’t by itself determine the tax outcome.

For interest deductibility, what matters is:

• whether there is a genuine borrowing arrangement
• how the borrowed funds are actually used.

If you’re borrowing in your own name to fund an investment property:

• you remain the taxpayer for that property
• and deductibility depends on your own income‑earning activities, not the structure alone.

Using a related entity (like your own trust) as lender doesn’t automatically change:

• whether interest is deductible
• whether a property is negatively geared.

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