Australian Banks Tighten Policies on Trust and Company Lending

In late October 2025, Macquarie Bank announced a pause on all new home loan applications where the borrower is a trust or a company. This decision was influenced by several factors:

• Concerns over the increasing promotion of trust lending strategies on social media platforms, which could lead to misuse of trust structures.
• Anticipation of upcoming anti-money laundering (AML) regulations that would complicate trust and company lending processes.

It's important to note that this pause applies solely to new applications; existing trust or company loans with Macquarie remain unaffected.

Similarly, CBA has implemented restrictions effective from 22 November 2025. For broker-introduced applications, non-individual borrowers (trusts or companies) must now have an existing lending facility with CBA-such as a home loan, business loan, personal loan, or credit card-that has been active for at least six months. This policy change is part of CBA's broader risk-appetite recalibration, aiming to simplify origination processes and reinforce prudent lending standards. Notably, this restriction currently applies only to broker-introduced applications; direct applications by existing customers are treated differently.

These measures reflect a growing emphasis on responsible lending practices within the Australian banking sector. By tightening policies on trust and company lending, Macquarie Bank and CBA aim to mitigate potential risks associated with complex lending structures and ensure compliance with evolving regulatory standards.

For borrowers utilizing trust or company structures, these changes underscore the importance of staying informed about lending policies and maintaining transparent communication with financial institutions to navigate the evolving lending landscape effectively.