What the New Macquarie & Commonwealth Bank of Australia (CBA) Lending Clamp Down Means for Property Investors

Stricter “Company & Trust” Loan Rules Could Change Your Investment Strategy, Here’s What You Need to Know

The landscape for property investors in Australia is shifting. From 22nd November 2025 CBA introduced tighter lending rules for non individual borrowers that is, companies and trusts significantly affecting how investors finance property through those structures. 

If you’ve been relying on trust or company loan structures for investment properties, it’s time to carefully reconsider whether this strategy still makes sense under the new rules.

 
What Has Changed

• From 22 November, any application by a company or trust (or guarantor on their behalf) must show an existing lending facility with CBA for at least six months. This facility can include a home loan, business loan, personal loan, or credit card. 

• Applications lodged before the cutoff date will be assessed under the old policy, but from that point forward brokers must ensure the “six month existing customer” requirement is met. 

• Additionally, CBA updated how it calculates repayments on loans via companies or trusts that involve other financial institution (OFI) obligations. This will likely impact serviceability assessments. 

These adjustments follow similar moves by Macquarie Bank, which ceased new company/trust lending altogether in late October 2025.


Why the Change and Why Now

Using company or trust structures has long been popular with seasoned property investors. These structures often offered benefits around tax, asset protection, and importantly allowed borrowers to hold debt in an entity rather than under their personal name, sometimes enabling larger borrowing capacity or “gearing up” multiple properties.

However, in recent years some of these arrangements often promoted by aggressive “property spruikers” on social media have led to over leveraging, risk stacking, and insufficient stress testing of borrowers’ true financial resilience. 

Regulators appear increasingly concerned about high risk lending. Though the banks haven’t explicitly cited regulatory pressure, many observers believe tightening policies reflect concern over “loophole driven” lending strategies and potential systemic risk in the housing market. 

As one mortgage broker put it, the clamp down is “prudent” — signalling a return to more conservative, transparent lending practices. 

What This Means for Property Investors, Less Leverage via Company / Trust Structures

If you were planning to use a company or trust loan through CBA (or a similar lender), expect far more scrutiny. If you don’t already have an existing facility with CBA, your application could be rejected or subject to more conservative assessment.

Increased Importance of Financial History with the Bank

The new six month minimum relationship requirement means you may need to become a customer even for something as simple as a credit card well in advance of seeking a loan.

Serviceability Tests Will Get Tougher

With updated balance sheet calculations and heightened scrutiny on company/trust borrowers, expect banks to apply more conservative repayment calculations. Borrowing capacity derived under previous “optimistic” serviceability assumptions may no longer hold true.

Investors May Reconsider Personal Name Loans

Given the extra barriers for trusts and companies, many investors may find it simpler to apply for loans in their personal names especially if they do not already have an established banking relationship.

Opportunity for Alternative Lenders or Private Lending

As major banks tighten up, non bank lenders, private lenders or “second tier” providers may become more attractive, particularly for investors who want to continue using company/trust structures.
 

Should You Review Your Investment Strategy Now?

If you’ve been relying on trust or company based financing for your investment property, the answer is yes you should.

• Speak to your broker or adviser about alternate strategies, such as personal name loans, joint applications, or investing through other loan structures.

• Factor in tighter serviceability assessments make sure rental income, interest rates and buffers are stress tested realistically.

• Be cautious about following any aggressive “set and forget” property spruiker advice from social media or third parties.

It’s more important than ever to take a prudent, well informed approach to property investment finance.

The lending clamp down by CBA following Macquarie’s earlier move signals a shift in the mortgage market. For property investors who have increasingly turned to company or trust structures for leverage and flexibility, the new rules may close off some of those advantages.

While the changes might feel restrictive, they also restore a more conservative, risk aware approach to borrowing. For astute investors who proceed deliberately, the shift may ultimately lead to wiser investment decisions and better long term outcomes.

If you are considering investing or refinancing now, it’s time to rethink your financing strategy and act carefully.

Visit our website to view all our available investment properties www.ausinvestmentproperties.com.au