Over the past few months, more lenders have started tightening up how they assess company and trust home loan applications.
This matters because for years, some investors have used these structures not just for tax or asset protection reasons – but to stretch borrowing capacity.
The risk with doing it purely for “capacity” is that:
- lenders and regulators have flagged it as higher risk, and
- the rules are changing quickly – often with little notice.
Quick disclaimer
This is general information only and not personal advice. Trust/company structures should only be set up (or changed) with guidance from a qualified accountant and/or legal adviser, because the tax and legal consequences can be significant.
Why lenders and APRA don’t love “trust/corporate capacity strategies”
A few things have been happening in the market:
1) The APRA buffer still applies for personal lending
APRA expects banks to assess home loans using a minimum 3% serviceability buffer above the actual rate.
2) Some structures have been used to “soften” how debt is assessed
In certain trust/company assessment styles (varies lender to lender), some borrowers have been assessed more on:
- whether repayments are being met today, rather than
- whether the overall position survives a stressed/buffered environment
That’s where the “red flags” come in – because it can create a situation where someone looks serviceable on paper, but is actually running too tight if rates rise, rents fall, or vacancies hit. Trust financials also only show the interest payments, whereas principal may also be required to be paid.
3) Trusts don’t always play nicely with negative gearing expectations
Many investors rely on negative gearing to assist cash flow.
But with trusts: a loss made by a trust generally can’t be distributed to beneficiaries – it’s typically carried forward and used against future trust income (subject to rules/tests).
So if someone has been sold a strategy that assumes “the tax refund will make it all work”, they need to double-check that assumption with their accountant.
4) Structures cost money and add complexity
Trust/company setups can be totally valid – but they can also mean:
- setup costs
- ongoing accounting
- compliance/admin
- extra lender documentation
- longer assessment times
If the only reason you’re doing it is to “get around borrowing capacity”, it’s worth slowing down and re-checking the risk.
What’s changed recently (and why it’s happening fast)
Here’s the clear trend: lenders are tightening, one by one.
Macquarie (late Oct 2025)
Macquarie moved to pause new lending where the borrower is a trust or company (new applications), citing volume/service pressure and increased complexity around these structures.
Commonwealth Bank (from 22 Nov 2025)
CBA tightened policy for non-individual borrowers – requiring the applicant/guarantor to have an existing relationship (lending facility) for at least six months.
ANZ (from 8 Jan 2026)
ANZ tightened company home loan requirements, and reduced maximum LVR to 70% for qualifying borrowers (with eligibility restrictions).
Firstmac (effective immediately – 15 Jan 2026)
Firstmac updated its trust/company policy, including:
- corporate trustees only for home and SMSF loans (no new individual trustees)
- stricter treatment of guarantees and disclosure
- more conservative handling around addbacks/related income in certain circumstances
And separately (as you’ve seen from lender communications), some bank brands have also shifted trust/company submissions away from standard residential broker flows and into business/SME channels – which can change turnaround times and how consistent the experience feels.
The practical message: “Be careful if you’re doing it for capacity”
Trusts and companies can be great when they’re used for the right reasons – for example, specific tax planning, succession, asset protection, or business ownership structures.
But if someone is pushing you into a trust/company primarily to:
- avoid buffers,
- “unlock extra borrowing”,
- or “recycle capacity”…
…you want to be extra cautious, because the banks are clearly moving to close those gaps.
If you’re considering a trust/company purchase, here’s a safe checklist
Before you go down this path, make sure you can answer:
- Why this structure? (tax/legal reasons — not just borrowing power)
- Have you spoken to your accountant? (and ideally a property-savvy one)
- Have you stress-tested cash flow? (vacancy, rate rises, repairs)
- Do you understand trust loss treatment? (losses generally can’t be distributed)
- Which lenders still allow it — and on what terms? (LVR caps, trustee requirements, guarantees)
Want us to sanity-check it?
If you’re thinking about buying in a trust or company, we’re happy to:
- tell you which lenders are currently open to it,
- explain the practical differences in assessment,
- and coordinate with your accountant so everyone’s aligned.
Feel free to reach out to our team and we’re happy to provide some guidance.