Common Questions About Investment Property Loans in a Company Name
Can an Australian company borrow to buy a residential investment property?
Yes. A number of lenders across Australia will finance residential investment property held in a company name. This includes both major banks and specialist non-bank lenders, though the policies vary considerably between them. Some lenders treat it as a standard residential investment loan with a director guarantee. Others apply a commercial lending policy, which affects the rate, LVR, and documentation requirements. The key is knowing which lenders are genuinely open to company borrowers and which ones will create problems partway through the process.
Does negative gearing apply when a company owns an investment property?
Not in the way it works for individuals. A company can still offset a rental loss against other income it earns, but it does not receive the individual negative gearing concession and cannot access the 50% capital gains tax discount that individuals and trusts receive after holding an asset for more than 12 months. Whether the company tax rate and structuring benefits outweigh the loss of those concessions depends on your situation. This is a question for your accountant before you commit to a structure, not after.
What LVR can I get on a company investment property loan?
For full doc company loans on residential investment property, some lenders will lend up to 80% LVR, with select lenders going higher in the right circumstances. Low doc company loans typically cap at 80%. The maximum available depends on the lender, property type, and locationProperties in smaller towns or with unusual characteristics may attract a lower maximum LVR regardless of the borrower structure. If a higher LVR is important to your purchase, lender selection matters significantly.
How does serviceability work differently for company borrowers?
Rather than using a personal income figure from a payslip, lenders assess company borrowers using the company's net profit after tax, plus allowable addbacks such as depreciation, interest on existing debt, and certain one-off expenses. Some lenders also incorporate the rental income from the property being purchased. The way different lenders treat addbacks varies, and some are more thorough than others in building a full picture of what the company actually generates. For self-employed business owners who retain profit in their company rather than drawing a high personal salary, this distinction is significant.
Do directors still need to personally guarantee a company mortgage?
In most cases, yes. Lenders extend credit to the company as the borrower but typically require one or more directors to provide a personal guarantee as security. Some lenders require all directors to guarantee regardless of their involvement in the business. Others will accept a guarantee from the primary income-earning director only. If there are multiple directors with different levels of involvement, this is worth clarifying early, as some structures create complications depending on who is required to sign.
Can I use an offset account on a company investment loan?
Some lenders offer offset accounts on company investment loans and some do not. It is less common than with individual investment loans, and where it is available, the product may sit on a different rate tier. If an offset account is a priority for cash flow management, this needs to be checked at the lender selection stage rather than assumed. We confirm offset availability as part of the loan comparison process for company borrowers.
Is buying in a company name better than buying personally after the 2026 budget?
The May 2026 federal budget restricted negative gearing and reduced the capital gains tax discount for individuals buying established residential investment properties. Companies were not affected by either change. This has shifted the comparison for some investors, particularly those already operating through a company who were previously leaning toward purchasing personally for the CGT discount. Whether a company structure is the right approach for you depends on your income, how long you plan to hold the property, what you intend to do with rental income, and a range of other factors. This is a structuring question that requires input from your accountant and solicitor. What we can tell you is whether the lending side of a company purchase is viable for your situation. If you are also weighing up an SMSF structure, see our SMSF loans page.
What happens to CGT when a company sells an investment property?
When a company sells an investment property, the capital gain is taxed at the company tax rate, which is either 30% for standard companies or 15% for base rate entities. Companies do not receive the 50% CGT discount available to individuals and trusts after a 12-month holding period. The full gain is included in the company's assessable income for that financial year. If profits are then distributed to shareholders as dividends, further tax implications at the individual level may apply depending on the shareholder's tax position. Your accountant should model this scenario before you decide on your purchase structure, particularly if you are comparing a company purchase against a trust with an individual or corporate beneficiary.
