Top Tips to Borrow in a Company Name for Investing

Borrowing in a company name is possible for an investment property, but it changes how lenders assess you and how your tax works. If you live in Goodna and you are weighing up a company against your own name, this guide walks you through it slowly, one step at a time.

You do not need to know the jargon to follow along. Each section answers one question, so you can stop at the point that matters to you.

Can You Get an Investment Loan in a Company Name?

Yes, a company can borrow to buy an investment property, but each lender sets its own policy on company borrowers. Confirm with the lender or a broker whether a company is accepted before you apply.

Our investment loans page explains the general process, and it applies whichever name you borrow in.

How Is Lending to a Company Different From Lending to a Person?

Company loans are generally treated as business credit, so some of the consumer protections that apply to personal loans may not apply. Credit provided to a company, or wholly or mainly for business purposes, is generally outside the National Credit Code.

One example is financial hardship rights. For a regulated personal investment loan, you can tell the lender you cannot meet repayments, and the lender must respond within set time limits. Those rights are written into the National Credit Code, and a company loan generally sits outside it. Ask your broker how a lender would handle a hard patch before you sign.

How Do Lenders Check That a Company Can Afford the Loan?

Banks must test your ability to repay at a rate at least 3.0 percentage points above the loan's rate. This applies to any new borrower of an investment loan, and it applies to authorised deposit-taking institutions like banks. Non-bank lenders are not bound by this rule.

Lenders also look at rental income cautiously. APRA expects lenders to count no more than 80 per cent of expected rent, because homes can sit empty between tenants. Each lender decides how it assesses company borrowers, including whether it looks at the directors' personal finances. Our borrowing capacity page shows what usually shapes the number.

Interest Only or Principal and Interest: What Changes?

An interest-only period does not increase how much you can borrow. APRA expects lenders to test the repayment as if principal and interest applied over the remaining years after the interest-only period ends.

Here is an illustrative example using a 6.75% p.a. rate. Say you borrow $500,000 over 30 years, with 5 years interest only. The interest-only repayment is $500,000 x 6.75% / 12, which is $2,812.50 a month. After year five, you must repay principal and interest over the remaining 25 years. At the same 6.75%, that repayment is about $3,455 a month. That is a jump of roughly $640 a month. The trade-off is that you owe the full $500,000 when the interest-only period ends. A company may find the step up harder if rent has not risen. You can read more on interest only loans.

What Happens to Negative Gearing When a Company Owns the Property?

For established homes bought after 7:30pm AEST on 12 May 2026, net rental losses will only offset other residential property income from the 2027-28 income year. This rule applies to individuals, partnerships, companies and most trusts, so a company does not avoid it.

Properties held before that time keep the current treatment, and eligible new builds can keep deducting losses against all income. Interest on money borrowed to buy a rental property is generally deductible while the property is rented or available for rent. Only the interest part of a repayment is deductible, not the principal. Tax outcomes depend on your situation, so talk to your accountant before you choose a company structure.

Does a Company Get the Capital Gains Discount?

The 50 per cent capital gains tax discount applies to individuals, trusts and partnerships, and it does not apply to companies. Gains accruing from 1 July 2027 move to cost base indexation with a 30 per cent minimum tax rate for those groups. How this plays out for your company is a question for your accountant, and it can weigh heavily on whether a company is worth it.

Do Not Forget Queensland Land Tax

Goodna is in Queensland, where land tax also affects the cost of holding property in a company. Companies and trustees have a lower land tax threshold than individuals: $350,000 of taxable land value, against $600,000 for individuals. Companies also pay on a steeper rate scale. Speak to the Queensland Revenue Office and your accountant to see how this applies to you before you choose a structure.

A Goodna Scenario: Two Choices, One Outcome

As an example, consider two Goodna friends who want to buy a rental together and are thinking about holding it in a company. They ask an accountant about the tax side, and they learn that the capital gains discount differs for companies, and that the new loss rules for established properties bought after 12 May 2026 apply to companies as well. They decide to borrow in their own names as joint owners. They keep the hardship protections that come with a regulated personal loan. The trade-off is that they each carry personal liability for the debt. Another pair in the same position might reach a different answer, and that is fine. The point is to ask these questions before you sign.

Our Goodna page has local information on how we work with buyers in the area.

Using Equity and Refinancing Later

If you later want to borrow against the equity in a property, the interest is only deductible when the extra money is used to earn income. Using it for private spending is not deductible, whatever property secures the loan. Lenders set their own limits for borrowing above 80 per cent of the property's value, and above that point Lenders Mortgage Insurance is generally required. Our equity release and investment loan refinancing pages explain how these work. Ask about costs and valuation steps first, because they vary between lenders.

Questions to Ask Before You Apply

Check whether the lender accepts company borrowers for residential property. Check whether directors must sign personal guarantees, and what that means if the rental income falls. Check how the lender treats your rental income and what it will do if you struggle with repayments. Finally, check the tax position, including Queensland land tax, with your accountant before you commit.

Frequently Asked Questions