Loan Finance Online :: News
SHARE

Share this news item!

Australian Banks Tighten Trust Lending Policies in Response to Regulatory Oversight

Understanding the Implications of Recent Changes in Trust Lending by Major Australian Banks

Australian Banks Tighten Trust Lending Policies in Response to Regulatory Oversight?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a significant shift within Australia's financial sector, major lenders Macquarie Bank and the Commonwealth Bank of Australia (CBA) have recently implemented stricter policies regarding lending to trusts and companies.
These changes are indicative of a broader industry response to regulatory concerns about systemic risks in housing finance.

Macquarie Bank announced a pause on new home loan applications from trusts and companies in late October 2025. This decision was influenced by the proliferation of social media strategies promoting the use of trusts for investment purposes, which raised concerns about potential misuse of trust structures. Additionally, upcoming anti-money laundering regulations are expected to complicate trust and company lending processes, contributing to Macquarie's cautious approach.

Similarly, CBA introduced restrictions effective from 22 November 2025, requiring non-individual borrowers to have an existing lending facility with the bank that has been active for at least six months. This policy change aims to simplify the loan origination process and reinforce prudent lending standards.

These developments underscore the importance for investors and borrowers to stay informed about evolving lending policies. Understanding the rationale behind these changes can help in navigating the complexities of property investment and financing in Australia.

Published:Thursday, 5th Feb 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Australian Banks Tighten Trust Lending Policies in Response to Regulatory Oversight
Australian Banks Tighten Trust Lending Policies in Response to Regulatory Oversight
05 Feb 2026: Paige Estritori
In a significant shift within Australia's financial sector, major lenders Macquarie Bank and the Commonwealth Bank of Australia (CBA) have recently implemented stricter policies regarding lending to trusts and companies. These changes are indicative of a broader industry response to regulatory concerns about systemic risks in housing finance. - read more
Japanese Banks Drive Significant Growth in Australian Business Lending
Japanese Banks Drive Significant Growth in Australian Business Lending
05 Feb 2026: Paige Estritori
Australia's business lending landscape has experienced remarkable growth, with the top 10 authorised deposit-taking institutions (ADIs) reaching a combined loan book of $925 billion as of July 2025. Notably, Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) have emerged as key contributors to this expansion. - read more
Steady Financial Performance of Australian Major Banks in FY25 Amidst Economic Uncertainty
Steady Financial Performance of Australian Major Banks in FY25 Amidst Economic Uncertainty
05 Feb 2026: Paige Estritori
Australia's major banks have demonstrated resilience in the face of economic uncertainty, reporting a combined profit after tax of $29.8 billion for the fiscal year 2025. This figure represents a marginal decrease of 0.5% compared to the previous year, indicating stability in the banking sector. - read more
RBA Maintains Cash Rate at 3.6% Amid Inflationary Pressures
RBA Maintains Cash Rate at 3.6% Amid Inflationary Pressures
20 Jan 2026: Paige Estritori
The Reserve Bank of Australia (RBA) has announced its decision to keep the cash rate steady at 3.6% during its November meeting, a move that aligns with the expectations of major financial institutions. This decision comes in response to the latest Consumer Price Index (CPI) data, which revealed a significant rise in inflation, prompting the RBA to adopt a cautious stance on monetary policy. - read more
Click for more Finance News


Finance Articles

How to Save for Your First Home: Tips for Young Australians
How to Save for Your First Home: Tips for Young Australians
If you're looking to buy your first home, starting to save early is one of the smartest financial moves you can make. By beginning to save when you're young, you give yourself a head start in accumulating the necessary funds to make a deposit on a house. This proactive approach has numerous benefits that extend beyond just having more money in the bank. - read more
The Essential Glossary: Simplified Financial Terms You Need to Know
The Essential Glossary: Simplified Financial Terms You Need to Know
In today's fast-paced world, financial literacy is more important than ever. For Australians, being financially literate means confidently navigating through personal finances, investments, and economic changes. It empowers individuals to make informed decisions about their money, which can lead to greater financial security and peace of mind. - read more
Leveraging Loan Products for Accelerated Financial Freedom
Leveraging Loan Products for Accelerated Financial Freedom
Financial independence means having enough income to pay for one's living expenses without relying on a traditional job. In Australia, this concept is not just a dream but a necessity for many who aspire to a life free from financial stress. It offers the freedom to make choices about how you want to live your life, from retiring early to pursuing passions and interests without monetary constraints. - read more
Your Guide to Understanding Different Small Business Loan Options
Your Guide to Understanding Different Small Business Loan Options
In the bustling world of entrepreneurship, small business loans often act as the backbone that supports growth and sustainability. Understanding the array of loan options available is imperative for business owners in Australia, ensuring that they can make informed decisions that align with their objectives. - read more


Free Assessment

Loan Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Interest Coverage Ratio:
A measure of a company's ability to make interest payments on its debt, calculated as EBIT divided by interest expense.

Quick Links: | Loans And Finance Australia | Personal Loans Australia | Business Loans Australia | Car Loans | Home Loans | Commercial Finance | Low Interest Loans | Unsecured Loans | Secured Loans | Loan Comparison Australia | Finance Brokers Australia
This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.