What is a Trust?
A trust is a legal arrangement established for purposes such as asset protection, tax benefits, or other specific objectives.
Typically, a trust involves the appointment of a trustee and designated beneficiaries. Trustees can be either individuals or corporate entities, depending on the structure and goals of the trust.
What is a Trust Loan?
Your clients may opt for a trust loan, which is a loan taken out in the name of a trust.
In this arrangement, the trustee manages the loan on behalf of the trust and its beneficiaries. Clients may choose to take out a loan in a trust for various reasons, including asset protection, tax benefits, and estate planning.
It is critical that the client has consulted with a licensed professional, such as an accountant, financial planner, or solicitor, for advice.
Brokers who are authorised credit representatives are not permitted to provide financial advice unless they hold this authorisation through an Australian Financial Services License.
Completing the loan application in Infynity
The structure of the trustee will determine the type of application used in Infynity:
Individual trustees – BID Application
Corporate trustees – Non Bid Application
Example of Trust Account Set-up within Infynity
To establish the complete client structure in Infynity, begin by creating the borrowing entity. First, create the Trust entity as the applicant.
Then, add the Trustee, specifying whether it is an individual or a corporate entity.
If the Trustee is a corporation, create profiles for the company directors, who may also serve as guarantors and beneficiaries.
This structured approach ensures that all relevant parties are properly documented within the system.
Here is a quick example of a company as trustee with two directors/guarantors.
Create the Trust entity as the applicant
• Create the trustee entity (either a company or individuals) this example is with a
company trustee
• If there is a company Trustee, then add in the individual directors as guarantors
Creating the Application
Select the appropriate compliance application. If a company is the trustee, then the application is Non-BID. If you are ever in doubt, reach out to our Compliance team - [email protected] for full and proper guidance.
Trust Type | Trustee type | BID or Non-BID | SOCA Required |
SMSF | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Property Investor Trust | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Discretionary Trust | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Unit Trust | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Family Trust | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Hybrid Trust | Individual | BID | Yes |
| Non-Individual | Non-BID | No |
Select the applicable application type.
- Best Interest Duty Applications are for all applicants where the trustee is a natural
person ie individual trustees who will be servicing the loans. Complete a SOCA document, starting with the needs analysis tab all the way through to client forms to
generate our SOCA for clients signing.
- Non Bid Applications are for loans where the trustee is not a natural person ie company trustee. Complete the application starting with the Loan facility tab.
For Non Bid applications it is recommended that you issue your Credit Guide and complete the preliminary assessment summary form within the Non BID NCCP Tab, this document does NOT need to be signed. The other NCCP documents don’t apply.
Required Structure within ApplyOnline
Follow the lender's specific requirements for trust applications and the submission process. Generally, in the ApplyOnline interface, you should set up the Trust as an applicant, ensuring a consistent approach across lenders that accept this application structure. The trust details required may differ among lenders. It's important that all parties involved in the loan are accurately transferred from Infynity to NextGen.
In the Applicants tab, ensure there is an applicant with the account type designated as "Trust." This information will automatically populate from Infynity if the structure has been correctly established within the system.
Enter all mandatory trust details, information that is captured in Infynity will populate through
Add in Trustee, this needs to be selected from the list of applicants on the application (note: only applicants already added to the application will display in the dropdown options)
Complete the beneficiary details, by selecting the beneficiary from the type dropdown. If a beneficiary is a Non-Loan Party, then select “other” and enter the beneficiary details as required
Additional Documentation required with Trust Applications
• A certified copy of the stamped trust deed.
• If there is a corporate trustee, a certified copy of the company constitution is required.
• Identification for all beneficiaries of the trust, as well as trustees and directors of trustees
• Notices of assessment and tax returns for the trust, along with company tax returns if needed.
Seek Professional Advice
We highly recommend that consumers consult with an accountant before using any type of trust for borrowing purposes.
We highly recommend that consumers consult with an accountant before using any type of trust for borrowing purposes.
Uploading Supporting Documents
Uploading supporting documents to your client file in Infynity is a compliance requirement, whether the loan is BID or Non-BID. Documents should be clearly named and organized into the appropriate folders within the Loan Documents tab, as outlined below:
Compliance Documents: Include items such as the Fact Find, Refinance Summary Report (for all refinance loans), Signed Statement of Credit Advice (SOCA), Signed Credit Quote (if a fee is being charged), SOCA short form (where applicable), and Signed Privacy Statement and Consent (if conducting a credit report).
Application Documents: This category encompasses all supporting documents, such as income and employment evidence, identification, lender servicing calculator, loan and savings statements, contract of sale, valuations, lender notes, and more.
Disclaimer: This information is current as at the time of each QRG publication. It is a general information guide only. This document was last updated on 24th March 2025