- Accountants
- Updated
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Trust Income Home Loan Assessment
Trust income — distributions received from a family trust or discretionary trust — is common among accountants, business owners and investors. Lenders assess trust income carefully and requirements vary significantly.
Quick Answer
Trust income can be used for home loan assessment, but most lenders require two years of trust financials, personal tax returns and evidence that distributions are ongoing and sustainable.
How Lenders Assess Trust Distributions
✓ Two years of trust financial statements
✓ Two years of personal tax returns showing distributions received
✓ Trust deed — lenders may request the deed to confirm entitlement
✓ Consistency — irregular or declining distributions may be treated conservatively
✓ Trustee position — whether the borrower controls distributions affects assessment
Common Trust Structures
✓ Discretionary (family) trust — distributions at trustee discretion
✓ Unit trust — fixed percentage allocation
✓ Hybrid trust — combination of fixed and discretionary elements
✓ Corporate trustee — company acts as trustee
Free Guide
Professional Lending Guide
Frequently Asked Questions
Can discretionary trust income always be used?
Not always. Some lenders require the borrower to be a named beneficiary and to demonstrate a history of consistent distributions.
Do I need the trust deed for a home loan?
Some lenders require the trust deed. It is worth having it ready before applying.
Types Of Trust Structures And How Lenders Treat Them
The most common trust structure for accountants and investors is a discretionary (family) trust where the trustee distributes income at their discretion each financial year. Lenders need to assess whether the distributions are likely to continue.
What Lenders May Look At
✓ 2 years of trust financial statements
✓ 2 years of personal tax returns showing distributions received
✓ Trust deed — lenders may request to confirm beneficiary entitlement
✓ Distribution consistency across years
✓ Whether the borrower controls distributions as trustee
✓ Trust debts and liabilities
Discretionary Trust Distributions: The Key Challenge
Because discretionary trust distributions can be changed by the trustee at any time, lenders treat them more conservatively than PAYG income. If distributions have varied significantly between years, lenders may use the lower year or average conservatively.
Unit Trust vs Discretionary Trust
Unit trusts provide a fixed percentage allocation to each unit holder — more predictable. Discretionary trusts distribute at trustee discretion — less predictable from a lender’s perspective. Some lenders require a trustee resolution confirming the borrower’s entitlement.
Common Mistakes With Trust Income
✗ Not having the trust deed available before applying
✗ Not having 2 full years of trust financials prepared
✗ Assuming trust income is treated the same as PAYG salary
✗ Not having a tax agent letter confirming trust position
Can I use trust distributions as income for a home loan?
Some lenders accept trust distributions with 2 years of financials and consistent distributions.
Do I need the trust deed?
Some lenders request it to confirm your entitlement as a beneficiary.
Review Trust Income Assessment
We identify lenders suited to trust income structures.
General information only. Lending eligibility, LMI waiver policies, rates and approval outcomes vary by lender and are subject to assessment.
Review Trust Income Assessment
We identify lenders suited to trust income structures.
General information only. Lending outcomes vary by lender and individual circumstances.
Written by: Simpli Finance Lending Team · Reviewed by: [Broker Name], Mortgage Broker · Last updated: June 2026