Banks Are Changing Trust Lending Rules in 2026, What Property Investors Need To Know

Trust lending used to feel like a shortcut.

Fast approvals. Sharp pricing. Flexible policy. In some cases, borrowing capacity that looked almost endless.

That era is closing.

In 2026, banks are stepping back from new trust lending, adding tighter criteria, and pushing more investors into smaller banks and non bank lenders. The shift is not just about rates. It is about regulation, admin burden, and how banks manage risk at scale.

What Happened

In this episode of Property Nerds, the hosts unpacked a major lending update: banks are changing their trust lending rules.

Macquarie was a key lender for trust loans because it offered competitive rates and a smoother process. It also had a policy settings that investors and brokers leaned on heavily for trust lending.

Then the tone changed.

• Macquarie pulled back on trust lending.
• Other major banks followed with similar restrictions.
• Several majors moved to “existing customers only” settings, often with minimum history requirements.
• The discussion linked these changes to tighter risk controls, debt to income limits, and rising compliance workload around identifying parties within trusts.

The result is clear. Trust lending still exists, but the path is narrower and more specialised.

Key Findings

1) The majors are stepping away from new trust lending

A common pattern came through.

Major banks are not fully banning trusts, but many have limited new to bank trust lending. Some are only accepting trust loans for existing customers with a track record.

This matters because investors who relied on major bank policy settings now need different options.

2) Compliance is increasing, especially around trust identification

The episode flagged expanding anti money laundering obligations and the growing expectation that lenders, brokers, and even real estate professionals will collect and verify more information.

That means:

• more documentation
• more verification steps
• slower processing
• higher operational cost for lenders

When lenders are built for speed, extra admin changes their economics.

3) The “endless borrowing” era is done

There was a direct callout.

Some parts of the market built marketing around an unlimited borrowing narrative. The episode was blunt: that playbook is gone.

It is also not why most investors should use a trust.

4) Trusts are still valid for the right reasons

The episode separated hype from fundamentals.

Trusts still have legitimate uses:

• asset protection planning
• long term tax planning
• distribution flexibility, when aligned with accountant advice and family circumstances

What is changing is how lenders assess trust borrowers, and which lenders are willing to compete.

5) Non bank lenders and smaller banks will take more share

As majors pull back, the volume flows somewhere else.

The episode suggested sophisticated investors will increasingly hold lending with smaller lenders via brokers, because those lenders are more active in:

• trust lending
• SMSF lending
• complex portfolio structures

This mirrors what happened with SMSF loans when majors largely exited that segment.

6) Most investors do not need extreme complexity to hit their goals

A standout stat from the episode:

• 1,600 client portfolio plans
• Average properties required to reach the goal: 3.54

That reinforces a practical point. Many investors can reach targets with a tight plan and strong finance structure, without relying on aggressive policy edges.

Action Steps

1. Get clear on the real reason you want a trust
   Write it down in one sentence. Tax planning, asset protection, future beneficiaries, business risk. If the reason is only borrowing power, you are building on sand.
2. Map your next two purchases, not just the next loan
   Ask your broker, “What does this lender do on deal two and deal three, once I have more debt and more entities?”
3. Expect higher documentation standards
   Trust deeds, trustee details, beneficiary information, financials, and identification checks are not optional in this direction of travel.
4. Build a lender bench
   Majors, second tiers, non banks. You want options before you need them.
5. Avoid chasing a silver bullet
   If a strategy sounds like it avoids life trade-offs, it is usually hiding risk. Real wealth building is a system, not a trick.

Trust lending is not dead. It is just more specialised.

If you want to build your portfolio with the right structure, the right lenders, and a plan that holds up as policies tighten, book a discovery call.

Book a discovery call to build your finance strategy.