Key takeaways
Macquarie Bank, once the go-to lender for property investors using company and trust structures, has withdrawn entirely from this lending space.
This move reflects growing caution across the banking sector about complex ownership structures and signals a tightening credit environment for investors relying on trusts.
ASIC and APRA are cracking down on risky lending practices, especially where investors use multiple trusts to extend their borrowing capacity.
The surge of unlicensed “property mentors” and brokers giving financial advice on social media has compounded the problem, prompting banks like Macquarie to distance themselves from these high-risk setups.
Despite recent lending restrictions, trusts are still powerful tools for asset protection, tax flexibility, and estate planning.
The problem lies not in the structures themselves but in how they’re being misused. Properly designed trusts remain integral to sophisticated, long-term wealth strategies when guided by licensed experts.
Setting up multiple or unnecessary trusts can lead to higher compliance costs, reduced borrowing capacity, and potential tax inefficiencies.
Overly complex structures can also hinder refinancing or asset transfers, turning what was meant to be a protection tool into a financial burden.
Trusts have long been one of the most powerful tools available to property investors.
Used properly, they can protect your assets, help with estate planning, and provide flexibility in managing your growing wealth.
But used poorly – or set up for the wrong reasons – they can quickly turn into financial handcuffs rather than a safety net.
And right now, we’re seeing far too many investors caught out by that exact problem.
What’s changed: Macquarie Bank pulls the pin
Earlier this month, Macquarie Bank – one of Australia’s most flexible lenders for company and trust structures – made a surprising move.
Initially, it limited borrowers to just one company or one trust structure per person.
Then, only days later, it went a step further: it stopped lending to property investors using any trust or company entities altogether.
This wasn’t a quiet policy update; it was a complete withdrawal from a model that had helped countless investors grow strategically and safely.
Macquarie had built a reputation for understanding complex ownership structures, offering quick approvals and tailored products for investors with multiple entities.
That option is now gone – and the reasons behind it are revealing.
Why lenders are getting nervous
Macquarie’s decision came amid growing regulatory scrutiny.
ASIC and APRA have both been monitoring the rise in investor lending and the way some borrowers are using layered structures to stretch their borrowing capacity or mask exposure.
But there’s another catalyst: a disturbing rise in unlicensed financial advice being shared by inexperienced mortgage brokers, buyers’ agents, and “investment mentors” on social media.
These unqualified voices are encouraging clients to set up multiple trusts simply to keep borrowing when they can’t afford to buy in their personal names.
This approach is not only risky, it’s potentially non-compliant with Australian financial services regulations.
Regulators and industry bodies are warning that unlicensed operators are blurring the lines between credit advice and financial planning, creating serious exposure for both investors and intermediaries.
In many cases, investors are being told to create multiple entities without any understanding of the tax, compliance, or long-term cost implications.
And that’s exactly the kind of behaviour that has now caused lenders like Macquarie to pull back.
Why trusts still matter (when used properly)
It’s important not to throw the baby out with the bathwater.
Trusts are still an incredibly valuable part of a sophisticated property investment strategy.
When used correctly and with the right guidance, a trust can:
- Protect your personal assets from business or legal risks
- Provide flexibility in distributing income to beneficiaries
- Assist in intergenerational wealth transfer and estate planning
- Help manage exposure across multiple investments
The problem isn’t the structure, it’s the misuse of the structure.
A trust should be created as part of a comprehensive financial and estate plan, not as a quick fix to bypass borrowing limits or dodge tax.
At Metropole Wealth Advisory, we continue to recommend trusts as a valuable component of a well-considered strategy, but only after understanding the investor’s long-term objectives, risk profile, and tax position.
Setting up multiple trusts without a clear purpose or coordinated plan can backfire badly.
Some of the most common problems we see include:
- Higher costs and compliance complexity: Each trust requires its own tax return, accounting, and ongoing administration.
- Reduced borrowing power: Many lenders apply stricter criteria or higher rates for trust and company loans – and as we’ve seen, some are now refusing to lend at all.
- Tax inefficiencies: Incorrectly structured trusts can trigger capital gains tax or land tax complications.
- Loss of flexibility: Overcomplicating ownership structures can limit your ability to refinance, restructure, or pass on assets effectively.
In short, a trust is a scalpel, not a sledgehammer. It needs to be used precisely and strategically.
What smart investors should do now
If you already own properties in a trust, don’t panic.
Macquarie’s decision doesn’t mean your structure is invalid or that all banks will follow suit.
But it does mean that the lending landscape is shifting.
So, it’s wise to review your current structures with your accountant or an experienced financial strategist who understands property, taxation, and wealth protection holistically.
For those considering using a trust, ask yourself:
- Does this align with my broader wealth strategy?
- Have I considered all the tax and lending implications?
- How will its cash needs be funded?
- What type of trust do you anticipate using?
- Am I getting advice from licensed professionals?
The bottom line: get advice, not opinions
There’s no one-size-fits-all approach when it comes to structuring your investments.
A trust can be a smart and effective tool – but it’s not a shortcut to infinite borrowing or a magic tax shield.
With regulators tightening oversight and banks becoming more cautious, now more than ever, investors need clear, qualified guidance.
At Metropole Wealth Advisory, our team specialises in helping property investors, business owners, and families create safe, compliant, and tax-efficient structures that support long-term wealth creation and asset protection.
If you’re considering buying your next property through a trust or want to review your current arrangements, speak with a Metropole Wealth Strategist before making your next move. Click here now and organise the time for a complimentary chat.
