Corporations, Individuals, and More: A Guide to the Different Types of Borrowing Entities

An overview of the various types of borrowing entities, including corporations, individuals, trusts, and more, and the pros and cons of each

When it comes to borrowing entities, it is important to understand that there are a variety of options available, each with its own set of pros and cons. From corporations and individuals to trusts and self-managed super funds (SMSFs), there are many different types of borrowing entities that can be used to secure a mortgage.

One of the most common types of borrowing entities is the natural person, also known as an individual. This type of borrowing entity is typically used by individuals who are looking to purchase a property for their own use, and can be a good option for those who are looking for a simple and straightforward process. However, individuals may be subject to more stringent lending criteria, and may find it more difficult to secure financing for a property.

Another common type of borrowing entity is the business partnership. This type of borrowing entity is typically used by partners who are looking to purchase a property for business use, and can be a good option for those who are looking for a straightforward process. However, business partnerships may be subject to more stringent lending criteria, and may find it more difficult to secure financing for a property.

Mortgage Street understands that different borrowing entities have different needs and requirements, that’s why we offer a range of flexible products that accepts different types of borrowing entities aside from natural person & business partnership. This includes trading Australian corporation, trading discretionary trust, trading unit trust, trading hybrid trust and SMSF (with a corporate trustee).

In conclusion, there are many different types of borrowing entities available, each with its own set of pros and cons. Contact a Mortgage Street accredited mortgage broker today to learn more about how our flexible products can help you expand your lending options.