Property investors across Australia were caught off guard this week after Macquarie Bank, one of the country’s biggest lenders, announced it would stop offering loans to companies and trusts. For years, this structure has been a go-to strategy for investors wanting to build larger portfolios while separating assets and managing risk. But with Macquarie’s exit, that model is suddenly on shaky ground.
This move matters because Macquarie wasn’t just another player; it was the most accessible bank for company and trust lending. Investors who relied on creating multiple entities to buy more properties are now facing serious limits to their borrowing power. And when one major bank steps back, others often follow.
In this article, we’ll break down what’s changed, why the shift is happening, and what smart investors can do to stay ahead. You’ll see how to adjust your property investing strategy, protect your borrowing capacity, and continue growing your portfolio in a changing lending environment.
What just happened – the change in the lending rules
The bank decision — what was announced and when
Early this week, Macquarie Bank announced a sudden shift that’s sent shockwaves through the property investing community. On Monday, the bank limited investors to just one company or trust for lending. By Wednesday, that policy had changed again; this time, Macquarie pulled out of company and trust lending altogether.
This means new property loans through company or trust structures are no longer being accepted. Existing loans remain in place for now, but investors who planned to keep expanding under those structures are facing a hard stop.
Macquarie had been the go-to lender for company and trust borrowing because of its streamlined process and investor-friendly approach. Losing this option instantly narrows the pool of lenders willing to support structured borrowing, and when a major player exits, it often signals a broader market shift.
Why this move matters to the everyday investor
For many Australian property investors, building a portfolio through companies or trusts has been a popular way to protect assets, manage tax, and separate risk. But this change from Macquarie exposes a big flaw in that approach: your entire strategy depends on bank policy staying the same.
Regulators like ASIC and APRA have been watching the surge in investor lending closely. With investor loans now sitting around 40% of total home loans, they’re concerned about riskier lending patterns, especially those promoted through unlicensed advice on social media. By stepping in early, they’re putting pressure on lenders to tighten their criteria before the problem grows.
For everyday investors, this means the easy route to scaling through multiple company or trust structures has closed, at least for now. It’s a wake-up call to review your borrowing plan, talk to your broker, and start thinking about more adaptable ways to finance future property purchases.
The driver behind the shift
Regulatory & risk pressure
Macquarie’s retreat from company and trust lending didn’t happen in isolation. Regulators have been tightening their grip on investor borrowing for months. Both APRA (Australian Prudential Regulation Authority) and ASIC have been tracking a sharp rise in investor loans, with investor activity returning to levels last seen in 2017. When 4 in 10 home loans are going to investors, it raises concerns about lending risk and market overheating.
The use of company and trust structures has come under particular scrutiny. Regulators see some investors using these entities to stretch their borrowing power beyond what would normally be approved under standard personal lending criteria. By stepping in, they’re signalling that riskier lending channels and opaque structures are now under the microscope. Banks are being pushed to prove that their loan books reflect responsible lending, not loophole-driven borrowing.
Marketplace behaviours that triggered it
The real spark came from how common trust and company borrowing had become among everyday investors. Social media has played a big role here, promoting strategies where investors set up multiple entities to buy property after property, often encouraged by unqualified voices claiming it’s a “tax hack” or “debt shield.”
Macquarie, known for making this type of lending accessible and efficient, became the preferred bank for these investors. But as the numbers grew, so did regulator attention. When a large number of borrowers start following the same playbook, banks start seeing the same risk profiles multiplied across their portfolio, and that’s when red flags go up.
Lending policy is always changeable
If this situation proves anything, it’s that no strategy built entirely around lender policy is ever safe. Bank rules change quickly, sometimes overnight, in response to regulator pressure or internal risk reviews. Investors who’ve relied heavily on company or trust loans are learning that the hard way.
The best-performing investors understand this reality. They work with brokers and advisors who plan for change, diversifying lenders, mixing structures, and keeping flexibility in their borrowing strategy. If your investment plan relies on one type of lending staying open forever, it’s not a strategy; it’s a gamble.
Why the company/trust model is increasingly fragile
Asset protection vs borrowing power trade-off
Setting up a company or trust can help investors protect their personal assets and manage taxes more effectively. It separates personal liability from investment risks, a smart idea in theory. But in practice, it also creates hurdles when it comes to borrowing.
Banks view company and trust loans as higher risk because they rely on additional entities, guarantors, and complex ownership structures. That means tighter checks, slower approvals, and smaller borrowing limits compared to loans in personal names. As explained by Broker.com.au, while trusts can shield assets, they usually reduce borrowing power since lenders factor in the extra layers of risk and administration. For investors who’ve built their strategy around these structures, the trade-off is now becoming harder to ignore.
Lender complexity and cost for trust/company structures
Borrowing through a company or trust often means extra paperwork, higher loan setup costs, and more rigid criteria. Lenders require full trust deeds, company constitutions, and personal guarantees from directors or trustees. That’s before you even reach the actual loan assessment.
According to Hudson Financial Partners, banks typically charge higher interest rates or additional fees to offset the perceived risk of lending to these structures. Some lenders also limit the types of properties that can be purchased through them. When you add in the compliance costs and administrative burden, what once looked like a smart structure can start to feel like an expensive anchor.
When policy change makes the strategy obsolete
The recent move by Macquarie Bank is the clearest example of how quickly lending policy can shift and how exposed investors can be when it does. In just a few days, the bank went from supporting trust and company lending to withdrawing entirely.
For investors who’ve built their property portfolios around this model, that change has cut off a major source of finance overnight. And when one major lender steps back, others often reassess their own exposure.
This shows why a flexible strategy matters. If your investment plan depends on a single bank or one lending policy staying constant, you’re leaving your future up to forces you can’t control. The investors who adapt fastest are the ones who’ll keep growing, even when the rules change mid-game.
What this means for your property portfolio today
If you were planning growth via new company/trust loans
If your property investment plan relied on setting up new companies or trusts to keep buying, that strategy needs an urgent review. With Macquarie stepping out of the space, and other lenders likely to follow, your access to finance through these structures has tightened dramatically.
You’ll need to speak with your mortgage broker or financial advisor about your borrowing options under the current rules. In many cases, this might mean exploring personal-name lending, assessing your borrowing power across multiple lenders, or preparing for stricter documentation if you plan to use complex structures again. Acting early can help you avoid stalled deals or expired approvals down the track.
If you already have properties via company/trust structures
For investors who already own property under a company or trust, this change is a reminder to check whether those structures still make sense. They may have worked well under past lending conditions, but with policies shifting, refinancing or repositioning your portfolio might now be smarter.
Review your current loan terms, interest rates, and how your entity structures align with your goals. Some investors may find that moving selected properties into personal ownership or refinancing with non-bank lenders provides more flexibility and access to capital. A conversation with your accountant and broker can clarify what’s best for your long-term strategy.
For first-timers or modest investors
If you’re just getting started or only hold one or two investment properties, this policy change could actually work in your favour. Simpler borrowing options like loans in your personal name remain the most accessible path for most everyday investors. They’re easier to apply for, cheaper to manage, and less exposed to sudden lender rule changes.
This is a good time to focus on strengthening your financial position, improving your borrowing capacity, and planning a strategy that’s adaptable. Growth in property doesn’t have to rely on complex entities; it just requires clear direction, discipline, and the right advice.
Alternative strategies to consider
Borrowing in your personal name / standard investor loan
Borrowing in your personal name remains the simplest and most stable path for many investors. It gives you clearer approval conditions, faster loan processing, and a wider choice of lenders. While you lose some of the asset protection that company or trust structures offer, you gain reliability and flexibility.
For most Australians building their first few properties, this approach makes financial sense. You’ll find it easier to track performance, refinance when needed, and stay ahead of sudden lender rule changes. As your portfolio grows, you can always explore more advanced structures later, ideally with professional advice guiding each step.
Use specialised non-bank lenders
When the major banks tighten lending, non-bank lenders often step in to fill the gap. These lenders aren’t bound by the same strict regulatory requirements and can assess borrowers more flexibly. They may allow higher borrowing limits, accept unique income types, or use smaller assessment rate buffers.
While non-bank lenders sometimes charge slightly higher rates, they can be the difference between securing your next property and stalling your portfolio. Working with a broker who understands this space can help you find the right balance between cost and opportunity.
Explore an SMSF investment strategy (if appropriate)
For investors with a solid super balance and a long-term outlook, buying property through a Self-Managed Super Fund (SMSF) can still be a strategic option. An SMSF loan separates your personal finances from your future retirement assets and allows your fund to hold income-producing property.
This option has specific legal and financial requirements, so it isn’t for everyone. But for those with the right setup, it can be a strong alternative to company or trust lending, one that still offers structural control and potential tax advantages.
Review your structure with an advisor
Now is the time to bring in professional advice. Speak with a qualified mortgage broker, accountant, or property advisor who understands both lending policy and investment strategy. They can review your current setup, test your borrowing limits under new conditions, and help you adapt your structure for the future.
A short strategy session can often save years of missteps. At AbodeFinder, our property consultants and loan specialists help investors rethink their portfolios, compare lending scenarios, and plan for sustainable growth, no matter what the banks or regulators change next.
How to act now? a checklist
Here’s how to protect your portfolio and keep your growth plans on track in light of the recent lending changes:
Re-evaluate your borrowing strategy
Take a hard look at how you’re financing your property purchases. If your approach depends heavily on company or trust loans, it’s time to rethink. Work out how exposed you are to these structures and whether your borrowing plans are still realistic under current lending rules.
Speak to your mortgage broker
Have an open conversation with your broker about the impact of these changes. Ask questions like, “What effect will this have on my existing and future loans?” or “Which lenders still offer flexible options for investors?” A good broker can compare lenders, highlight alternative funding paths, and help you make confident decisions.
Review your current structure
If you already own properties in a company or trust, review your setup with your accountant and broker. Check how your existing loans are performing, whether your structures still align with your goals, and if refinancing or restructuring could improve your flexibility.
Diversify your lender base
Avoid putting all your borrowing power with one bank. If one lender changes its policy, you should have other relationships in place to keep your investment plans moving. A diverse mix of banks, credit unions, and non-bank lenders can safeguard your ability to act when opportunities arise.
Set a growth plan that is resilient to policy changes
The most successful investors build strategies that can adjust when rules shift. Spread your risk across multiple lenders, use simple structures where possible, and keep cash buffers ready for tighter conditions. Property investing is a long game; the key is staying adaptable when the market or banks change direction.
Conclusion
The company and trust model has long been part of the property investing playbook in Australia, but its reliability has now weakened for most everyday investors. Macquarie Bank’s withdrawal from this lending space has highlighted how quickly bank policies can shift and how risky it can be to base your entire growth plan on them.
For serious investors, the takeaway is clear: be proactive, not reactive. Review your structures, stay informed about lender movements, and keep your borrowing strategy flexible enough to handle changes in the market. The investors who adapt early will keep moving forward, while others are forced to pause.
If your investment strategy was built around company or trust lending, now’s the time for a rethink. At AbodeFinder, we help investors assess their positions, explore lending alternatives, and design property strategies that still work in a shifting market.
If your plan relied on growing via trust or company lending, let’s talk about your next move. Book a one-on-one strategy session with AbodeFinder today and stay ahead of the next round of lending changes.
