A trust is an arrangement which allows a person or company to own assets on behalf of another person, family or group of people. These people are known as the beneficiaries of the trust. Assets are owned on behalf of beneficiaries but controlled by a trustee, who can be either a company or a person. The trustee is governed by a trust deed which sets out the rules that the trustee must follow and also covers how profit is distributed to the beneficiaries. Many people use a trust to purchase their investment properties because of the asset protection and tax advantages they offer.
Although all of the above trusts can apply for home loans, there are only a few select lenders that will approve them. Generally, hybrid trusts and trusts with company / corporate trustees tend to be more difficult to finance.