If I buy a property under a family discretionary trust, how is finance usually structured? The trustee is a company and I'm the sole director. Here are my imagined choices, please tell me which one is most common and why: 1) borrow under the trust, personal guarantee from me and / or wife to achieve serviceability. Interest is deductible only against property income - losses trapped in trust. 2) borrow under my own name or both me and my wife's names, interest cost is attributed to me or us personally It seems option 2 is more flexible because the losses aren't trapped in the trust - am I incorrect here? Do banks allow this structuring or is it a bad idea for some reason?