Macquarie Bank Pulls Out of Trust Lending (What It Means For You)

Macquarie Bank has recently stopped offering new loans where a trust or company is the borrower for investment properties. In simple terms, if you wanted to buy or refinance an investment property in a family trust, Macquarie is no longer an option for new applications.

This shift in trust lending comes at a time when lending rules are tightening and regulators are focusing more on complex ownership structures, including those involving trustees. It has already caused concern among investors, business owners, and advisers who have long relied on trust structures for asset protection and planning.

My name is Brad, and I am a mortgage broker at Nexgen Lending. I work with Australians who utilise trusts, companies, and standard personal loans to expand their portfolios and safeguard their assets. In this article, I will explain what trust lending is, why Macquarie has stepped back, who is most affected, and what options are still on the table.

By the end, you will have a clear picture of what this change means in practice and how to plan your next steps with confidence.

What is trust lending, and why do people use it?

Trust lending occurs when a bank or lender provides a loan to a trust structure rather than to an individual in their own name. The trust is the borrower, and it holds the property or investment on behalf of the people who benefit from it.

In Australia, many families and business owners use trusts for:

• Asset protection (keeping business or investment risks separate from personal assets)
• Estate planning (helping control how wealth is passed on)
• Seeking tax benefits (working with an accountant to manage how income is shared)
• Shared investing (family members or business partners investing together)

Another common structure used for investment in Australia is a self-managed super fund, which can also involve trust-like arrangements for property purchases.

A trust is not a person, so it needs someone to act on its behalf. That is usually a trustee, which might be an individual or a company. Behind the trust, some beneficiaries receive income or capital from the trust.

When a bank assesses a trust loan, it does not look only at the trust itself. It also looks at the people behind it, such as:

• The directors of the corporate trustee
• The individuals who are giving personal guarantees
• The key income earners whose income will repay the loan

It also considers guarantor obligations to ensure those backing the loan understand their responsibilities. So even though the trust is the borrower, the bank still wants comfort that real people stand behind the loan and have the capacity to repay.

Macquarie Bank built a strong position in this space. Brokers often saw Macquarie as a go-to lender for trust and company lending because it had:

• Clear policies for many trust types
• A strong online servicing and approval process
• Competitive rates for investors

That made Macquarie a popular choice for multi-property investors, business owners, and clients whose accountants had established structures, such as family trusts with corporate trustees.

How a trust loan usually works with a bank

To clarify how trust lending works in practice, consider a simple example.

A couple has a family trust with a corporate trustee. Their accountant has set this up so that:

• The company is the trustee and is listed on the title as the owner of the property
• The couple are directors of the company
• The couple and their children are beneficiaries of the trust

The trust now wants to buy an investment property, often through a trust home loan, to leverage opportunities like negative gearing for financial advantages.

In a typical trust loan:

• The trust applies for the loan
  The application is in the name of the trustee company as trustee for the family trust. The trust will be the owner on the property title.
• The bank checks income and expenses
  The bank looks at the personal income of the directors, plus any trust income. It runs serviceability checks in a similar way to a normal home loan, but includes trust or business income where relevant.
• Personal guarantees are given
  The directors of the corporate trustee usually give personal guarantees. This means they are personally responsible if the trust cannot repay the loan.
• The bank takes security
  The property the trust is buying is used as security. The bank registers a mortgage over that property.
• Extra documents are needed
  The bank may ask for the trust deed, company constitution, financial statements, and tax returns, so it can confirm who is in control and who benefits.

Compared with a standard home loan in your own name, there are more moving parts. The bank must be sure the trust is valid, the right people are signing, and the income used to repay the loan is clear and reliable. Families often choose to set up a trust like this on advice from professionals to achieve these goals.

Common types of trusts used for property and investment

While there are many types of trusts, a few appear often in property and investment lending.

Family or discretionary trust

These are very common for family investors. The trustee has some flexibility in how it shares income among the beneficiaries. Accountants often recommend them for families where income levels change over time, or where asset protection is a concern.

Unit trust

In a unit trust, each investor holds units, similar to shares. Income and capital are usually shared according to the number of units held. These structures are common where unrelated parties invest together, or where there is a clear split of ownership between family members or business partners.

Hybrid trust

Hybrid trusts combine features of both discretionary and unit trusts. They can allow some flexibility in income distribution, while still recognising unit holdings. They are more complex, so they require careful legal and accounting advice.

In all cases, the trust structure is usually put in place on advice from an accountant, financial adviser, or solicitor. Reasons often include tax planning, asset protection, succession planning, and long-term investment goals. Once the trust is set up, many clients then need a bank that will lend to that structure, which is where lenders like Macquarie used to come in.

Macquarie Bank exits trust lending: what has changed?

Macquarie Bank has now stopped accepting new home loan applications where a trust or company is the borrower. In practice, this means:

• New loans to trusts are not accepted
• New loans to companies (for residential lending) are not accepted
• Many investors who planned to use Macquarie for their next trust purchase must now look elsewhere

Macquarie has told brokers that one reason for this change is the rise of social media strategies that encourage people to use trusts and companies to stretch their borrowing capacity. These so-called “spruiker strategies” often focus on pushing the limits, rather than on long-term, responsible lending.

There is also a broader shift in the background. Regulators are tightening expectations around complex structures, and upcoming anti-money laundering Tranche 2 rules are expected to increase the checks required on trust and company borrowers, with potential legal implications for non-compliance. That makes these loans more time consuming to assess and monitor, for both banks and brokers.

Some other lenders have already started to pull back from trust and company lending, or have adjusted pricing and policy. For example, brokers have reported that some banks have reduced their focus on this area, stopped offering special pricing, increased servicing buffers, added more documentation checks, or lowered maximum loan-to-value ratios for trust borrowers.

For existing Macquarie customers with a trust loan, most can usually keep their current facility under the terms of their contract. The change is focused on new lending. That said, the way Macquarie handles future top ups, product switches, or restructures may evolve over time as policies continue to change.

Policy settings can move quickly, and each client’s situation is different. Before making any decision, you should speak with a broker who works with Macquarie and other lenders. As a broker at Nexgen Lending, I can confirm how Macquarie treats your specific loan and what options you have now and in the future.

Why would a major bank step back from trust lending?

When a large bank steps back from a lending segment, there are usually several reasons working together.

Higher perceived risk

Trust and company loans can carry more risk if used to stretch borrowing limits or to hide the true financial position of a borrower. The rise of social media spruikers urging clients to set up complex structures to “beat the system” has made lenders wary.

More complex assessment

A trust loan almost always takes more time to assess. The bank must review the trust deed, company details, tax returns, financials, and sometimes several layers of structures. That increases cost and the chance of errors.

Changing regulatory expectations

Regulators and upcoming AML rules are pushing banks to look more closely at complex borrowers. This includes checking the true owners, understanding where funds come from, and verifying more documents. For lenders, this adds to the compliance load.

Higher cost to manage over time

Even after settlement, trust loans often need more ongoing review. Changes to trustees, beneficiaries, or corporate structures can affect the bank’s position. Managing this over a large loan book is expensive.

Together, these factors can lead a bank to narrow its focus. In Macquarie’s case, it has already moved out of some lending areas in recent years, and this step fits that pattern of simplifying its book and reducing exposure to higher-touch segments.

Who is most affected by Macquarie Bank’s decision?

The impact is not the same for everyone. The groups most affected include:

• Property investors using family trusts
  Property investors who had planned to use Macquarie for new purchases or refinances in a family trust will now need to consider other lenders.
• Self-employed borrowers with trading or business assets in a trust
  Many business owners hold business assets or commercial property in a trust. If they wanted to use Macquarie for residential or investment lending in that structure, that path has closed.
• Professionals and business owners with asset protection structures
  Clients in fields with higher liability risk, such as medical or legal, often invest through trusts for asset protection. Macquarie was often a strong option for such borrowers.
• Clients with multi-layer structures
  Structures that involve a company as trustee, a trust as borrower, and multiple beneficiaries are now less likely to fit with Macquarie for new lending.

Borrowers who never planned to use Macquarie, or who hold all property in personal names, may feel little direct impact. The key question is whether Macquarie was part of your current or future lending strategy.

What it means if you already have a Macquarie trust loan

If you already have a Macquarie loan in a trust or company:

• You can usually keep your current loan, subject to your contract
• Your day-to-day repayments and rate will continue as normal unless you change the loan
• You may face more limits if you want to top up, restructure, or move to a different product within Macquarie in the future

Because policy changes can build over time, I suggest clients review their position early, rather than waiting until they have a contract deadline or a fixed rate expiry approaching.

A review might include:

• Checking your current rate and product
• Looking at your plans for the next two to three years
• Testing your borrowing capacity with other lenders that still support trust lending

At Nexgen Lending, we can sit down with you, look at your Macquarie position, and build a backup plan. This is general information, not personal advice, so it is best to discuss your exact structure before you act.

Your options now Macquarie has pulled out of trust lending

The key point for borrowers is simple: Macquarie has stepped back, but the trust lending market has not closed.

There are still banks and non-bank lenders that accept trust borrowers. However, their policies vary widely. Some are more conservative, others are more flexible but may charge higher rates or fees.

When we assess options for a client using a trust, we look at the loan structure, including:

• The trust deed and how complex it is
• Whether there is a corporate trustee or an individual trustee
• Who will give personal guarantees
• How income flows through the trust and related entities
• The client’s wider goals, such as growing a portfolio or protecting assets

In the current lending climate, calm planning is more important than chasing the absolute cheapest rate. A lender that understands your structure and is likely to support future deals can be worth more than a tiny rate saving today.

As brokers, our role is to explain the trade offs in plain language. For example, a major bank might offer a sharper rate but be stricter on serviceability or LVR for trust borrowers. A specialist lender might cost a bit more but accept more complex income streams or structures.

Through Nexgen Lending, we compare these options side by side so you can decide what fits your plan.

Other banks and lenders that may still work with trusts

Different lenders sit in different spots on the trust lending spectrum.

• Major banks
  Some of the big banks still accept trust and company borrowers, but they often prefer simpler structures, such as a basic family trust with a corporate trustee and clear personal guarantees. They may require stronger servicing and lower LVRs, especially for discretionary or unit trusts that offer tax benefits.
• Second tier banks and regional banks
  These lenders can be more flexible in certain cases, sometimes offering a middle ground between strict big bank policy and high-priced specialist lending.
• Specialist and non-bank lenders
  Some non-bank lenders are more open to complex structures, such as hybrid trusts or multi-layer setups. The trade off is often higher interest rates or fees, and sometimes tighter terms.

Policy can change quickly, as we have just seen with Macquarie. Rather than trying to track every policy update yourself, you can lean on a broker who works with these lenders every day and sees how they treat real applications.

Reviewing your trust structure with your adviser team

Macquarie’s move is a good prompt to check whether your trust structure still suits your goals.

We recommend speaking with:

• Your accountant about tax outcomes and business plans
• Your financial adviser about long-term wealth and risk settings
• Your solicitor about asset protection and guarantor obligations

A mortgage broker does not replace these professionals. My role at Nexgen Lending is to work alongside them. We bring the lending view to the table while they focus on tax, legal, and financial advice.

Some useful questions to ask your adviser team include:

• Does my current trust structure still suit my goals for the next 5 to 10 years?
• How does this structure affect my borrowing capacity with banks?
• Are there any planned changes to trustees, beneficiaries, or companies that might affect my loans?
• If I plan to buy more investment properties, is this trust still the right vehicle, or should I consider other options?

Once you have clarity on the structure, we can then match it with lenders that are comfortable with that setup.

Practical steps to protect your borrowing plans

To stay in control of your borrowing plans in this changing environment, I suggest a short practical checklist:

• 1. Review your current loans
  List each loan, lender, interest rate, and expiry date. Note any fixed rates and when they roll off, and any interest-only periods and when they end.
• 2. Map out the next 2 to 3 years
  Think about planned purchases, refinances, renovations, or restructures. Do you need more borrowing capacity soon, or are you in consolidation mode?
• 3. Get pre-assessed with alternative lenders
  If you have a trust loan with Macquarie, or you planned to use them, it can be wise to have a second option pre-assessed. This does not always mean a full application. It can be a detailed scenario run with other lenders.
• 4. Gather key documents
  For trust and company lending, lenders will usually need:
  • Trust deed and any amendments
  • Company constitution and ASIC records for any corporate trustee
  • Personal tax returns
  • Business or trust financial statements
  • Personal asset and liability details
• 5. Stay in contact with your broker
  Regular check-ins help you spot changes early. You do not want to discover a lender no longer suits you after you have signed a contract.

How Nexgen Lending and Brad can help you move forward with confidence

Macquarie’s exit from trust lending has changed the lending map for many investors and business owners. You do not need to work through that change alone.

At Nexgen Lending, my expertise in trust lending means I spend my days reviewing lender policies, speaking with credit teams, and seeing how different banks treat trust borrowers in real applications. That allows me to quickly spot which lenders are open to your structure and which are likely to waste your time.

I look at both standard home loans and complex trust home loans. This matters because many clients mix both. You might own your home in your own name, hold investments in a trust, and run a business in a company. One point of contact who understands how those pieces fit together makes the process smoother and less stressful.

My focus is on clear, documented advice. You know which lenders we are considering, what each offers, and what the trade offs are. That lets you make informed decisions with your accountant and adviser, rather than guessing.

Why working with a broker matters more when lending rules change

Bank staff can only talk about their own products. If you sit with one of those lenders that has just tightened policy for trusts, you may be told “no”, even though another lender would consider your case on reasonable terms.

When rules change, as they have with Macquarie, borrowers who deal direct must try to keep up with shifting policies, credit standards, and documentation needs across the market. That is a full-time task.

A good broker takes that load off your shoulders. My job is to:

• Track policy changes across many lenders
• Translate complex rules into simple language
• Spot potential hurdles early, such as trust deed issues or guarantee requirements
• Give you options before you commit to a purchase or refinance

This reduces the risk of late surprises, such as declined loan applications after you sign a contract, or approvals that come with tough last-minute conditions.

Conclusion: navigating trust lending after Macquarie’s exit

Macquarie Bank has pulled out of new trust lending, and that change has ripple effects for many investors, business owners, and families using trust structures. While that can feel unsettling, the good news is that other lenders still support trust borrowers, and there are paths forward.

The key is to plan early, understand your structure, and seek professional advice from an adviser team that includes your accountant, financial adviser, solicitor, and a broker who understands trust lending. With the right support, you can adjust your strategy without losing momentum.

If you are a property investor using a trust or company for property or investment, now is a smart time to review your position. Reach out to me at Nexgen Lending to discuss your scenario, test your options with other lenders, and put a clear plan in place for your next move.