Trust and Company Lending in 2026: What Property Investors Need to Know

The lending landscape for trusts and companies shifted dramatically at the end of 2025. Major lenders have pulled back, rates are climbing, and APRA has introduced new restrictions that will reshape how investors build their portfolios.

As a mortgage broker who specialises in helping investors expand from single properties to multi-property portfolios, I've been fielding a lot of questions about what's happening and what it means. So let me break it down for you.

What's Actually Happening?

In late 2025, we saw a rapid succession of changes from major lenders:

Why Are Lenders Pulling Back?

There are a few factors at play here.

The "finfluencer" effect: The rise of social media promoters pushing trust structures as a way to access "unlimited borrowing" has raised red flags. The strategy being promoted involves using trusts and companies to circumvent the standard 3% serviceability buffer that APRA requires lenders to apply.

When you borrow in your personal name, lenders must assess whether you can handle repayments if rates rise by 3%. With certain trust structures, some investors have been able to work around this requirement. Lenders like Macquarie explicitly cited these social media tactics as a key reason for their decision.

AML Tranche 2 regulations: The upcoming Anti-Money Laundering regulations will require additional verification steps for trust and company loans. This adds complexity, cost, and processing time for banks — making this type of lending less attractive from an operational standpoint.

To be clear, these changes are specifically targeting residential property investors using trust and company structures to work around serviceability requirements. Genuine business and commercial lending remains unaffected.

APRA's New DTI Limits

On top of the lender-led changes, APRA announced on 27 November 2025 that they're introducing debt-to-income (DTI) limits from 1 February 2026.

APRA Chair John Lonsdale was clear about the intent: "By activating a DTI limit now, APRA aims to pre-emptively contain risks building up from this type of lending and strengthen banking and household sector resilience."

Important context: Banks are currently sitting at around 10% of loans above that 6x DTI threshold. The 20% cap isn't actually binding right now — but it signals where the regulator's head is at.

Increased Scrutiny on Investor Lending

Beyond the policy changes, there's a broader shift happening. The major banks are scrutinising investor applications more closely than they were 12 months ago.

Even if you're not borrowing through a trust or company structure, expect lenders to ask more questions and request additional documentation on investor loans.

Where Can You Still Get Trust and Company Lending?

The options have narrowed, but they haven't disappeared entirely. Here's the current landscape:

With this type of lending shifting to smaller non-bank lenders, expect to pay more — higher rates, higher fees, and likely lower LVRs. This is where working with a broker becomes critical. Lender appetites are shifting quickly, and you want someone who can workshop your deal across multiple lenders before you commit to a purchase.

My Take on These Changes

Let's be real — these changes will make things harder for some, especially for those who are disciplined and really look after their portfolio. The actions of a minority (and the social media circus around "unlimited borrowing") have made things harder for everyone.

But personally, I think this is probably the right outcome for the market in the long term.

From my experience — even before lenders started applying this level of scrutiny — I've seen borrowers underestimate the running costs of investment properties. They neglect potential incidental costs, have no buffer for emergencies, and end up constantly on edge whenever one property underperforms.

In many of these cases, the trust structure didn't actually benefit them because they were negatively geared anyway. It simply masked a potential problem by allowing them to acquire additional debt with a simple self-declaration.

More measured lending, while inconvenient, should mean fewer people getting into trouble and more sustainable price growth. That's ultimately better for the market overall.

If you're considering a trust structure, make sure you're also speaking with your accountant and solicitor about the tax, legal, and structural considerations before making any decisions.

Practical Implications for Your Next Purchase

If you're planning to buy in 2026 using trust or company structures, here's what you need to factor in: