Major Australian Lenders Tighten Policies on Trust and Company Lending

Macquarie Bank has announced a pause on all new home loan applications from trusts and companies, citing concerns over the increasing use of these structures to maximize borrowing capacity. The bank highlighted the proliferation of strategies on social media promoting trust lending as a means to enhance leverage, raising red flags about potential misuse and financial risk.

Similarly, CBA has introduced restrictions for broker-introduced applications involving non-individual borrowers. Effective November 2025, such applicants must have an existing lending facility with CBA that has been active for at least six months. This policy aims to simplify the loan origination process and reinforce prudent lending standards.

These measures align with the Australian Prudential Regulation Authority's (APRA) ongoing efforts to monitor and mitigate risks associated with high household indebtedness and aggressive lending strategies. By tightening lending criteria for trusts and companies, lenders aim to prevent potential financial instability and ensure that borrowers are not overextending themselves.

For investors and businesses utilizing trust structures for property investment or business financing, these changes may necessitate a reassessment of their financing strategies. It's advisable to consult with financial advisors to understand the implications of these new policies and explore alternative financing options if necessary.

In conclusion, the recent policy adjustments by Macquarie Bank and CBA underscore a cautious approach to lending in the current economic climate. Borrowers should stay informed about these developments and consider how they might impact their financial plans.