No More Trust Home Loans? What Property Investors Need to Know in 2026

Over the past few years, buying investment properties through a trust has become increasingly popular among Australian investors. The appeal is clear — better asset protection, potential tax planning benefits, and long-term flexibility.

However, a quiet but significant shift is now happening in the lending space. Major lenders such as ANZ, Commonwealth Bank, and Macquarie Bank are tightening their approach to trust and company lending — and most investors are completely unaware.

This change is not being widely advertised on bank websites, but it is already impacting real loan approvals behind the scenes.

If you are planning to buy your next investment property through a trust, this could significantly affect your strategy.

WHAT HAS CHANGED IN TRUST LENDING?

While policies vary between lenders, several consistent trends are emerging:

• Lower loan-to-value ratios (often around 70%)
• Stronger income and servicing requirements
• Personal guarantees becoming mandatory
• Preference for existing banking relationships
• Increased scrutiny on trust structures and beneficiaries

In simple terms, borrowing through a trust is no longer as straightforward as it was even 6 months ago.

WHY ARE BANKS TIGHTENING TRUST LENDING?

There are three main reasons driving this shift:

1. Risk and complexity

Trust structures are more complex than individual ownership. Banks must assess not only the borrower but also the structure, beneficiaries, and long-term risks.

2. Regulatory pressure

Australian regulators are increasingly focused on responsible lending and transparency. Complex structures attract more scrutiny.

3. Investor behaviour

Many investors have been using trusts to scale portfolios aggressively. Banks are now becoming more cautious about highly leveraged strategies.

WHAT DOES THIS MEAN FOR PROPERTY INVESTORS?

This is where it becomes critical.

You can no longer assume finance will be available

Many investors decide on a structure first and then seek finance. That approach is becoming risky.

Borrowing capacity may be reduced

Trust lending often comes with stricter servicing and lower leverage, which can limit how far you can grow your portfolio.

The wrong structure can cost you the deal

We are now seeing situations where:

• Clients sign contracts
• Structure is set up
• Finance is declined or restricted

At that point, it may be too late to fix the problem.

THE BIG SHIFT: FINANCE FIRST, STRUCTURE SECOND

Traditionally, structure decisions were driven by:

• tax outcomes
• asset protection
• estate planning

Now, finance has become the starting point.

The reality in 2026 is: If the structure does not work for the lender, the deal may not proceed at all.

SHOULD YOU STILL BUY IN A TRUST?

The answer is: it depends.

Trusts are still powerful when used correctly. In many cases, they remain the right structure for long-term wealth planning.

However, the decision must now consider:

• your borrowing capacity
• lender appetite
• timing of acquisition
• long-term exit strategy

A one-size-fits-all approach no longer works.

COMMON MISTAKES WE ARE SEEING

• Setting up a trust before speaking to a broker or advisor
• Assuming all lenders treat trusts the same
• Overestimating borrowing capacity
• Focusing only on tax and ignoring finance constraints

These mistakes can be very costly in the current environment.

WHAT SHOULD YOU DO BEFORE BUYING?

Before signing any contract, you should:

• Confirm borrowing capacity under your intended structure
• Understand which lenders will support that structure
• Align your tax strategy with lending reality
• Seek advice that considers both tax and finance

WHAT’S NEXT

The reality is that trust home loans are not as straightforward as they once were. While lending has not stopped entirely, approvals are becoming more selective, and assumptions that worked in the past may no longer apply in 2026.

This makes it increasingly important to ensure that your structure, borrowing capacity, and overall strategy are aligned before making any commitment.

Speaking with experienced professionals who understand both tax structuring and lending considerations can help you avoid situations where a deal is delayed, restricted, or declined after you have already signed a contract.

If you would like to discuss your situation before proceeding with your next investment, you are welcome to contact Investax.

For those based in Western Australia, you may also reach out to Camden Professionals, which is part of the Investax Group, for local support.

FREQUENTLY ASKED QUESTIONS

Can I still get a trust home loan in Australia?

Yes, trust home loans are still available. However, lending has become more selective, with stricter conditions, lower loan-to-value ratios, and greater scrutiny on the borrower and structure.

Is it harder to borrow in a trust in 2026?

In most cases, yes. Compared to previous years, borrowing through a trust now involves more conditions and fewer lender options.

Should I buy property in a trust or personal name?

It depends on your circumstances. Personal ownership may provide stronger borrowing capacity, while trust structures may offer long-term tax and asset protection benefits for your property investments. The right choice requires careful planning.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on our website, Investax Group, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.