Major Lending Shift: What Property Investors Must Do Now

How Australia’s top lender pulled out of company/trust loans and what that means for your property portfolio

Australia’s property investment scene just shifted overnight. Macquarie Bank, one of the nation’s biggest and most trusted lenders, has pulled out of lending to companies and trusts for property investors. This isn’t a small adjustment; it’s a hard stop that instantly reshapes how many investors structure their portfolios and plan for growth.

If you’ve been building your property portfolio through company or trust entities, your strategy just changed. The approach that helped thousands of investors scale efficiently has hit a wall, forcing a rethink of how to fund the next move.

In this article, we’ll break down what happened, why it matters, and what steps you can take to stay in control. You’ll learn how to turn this disruption into an advantage using power moves drawn from real investment strategy, the kind that keeps you adaptable, informed, and ahead of the market.

What Happened: The Shift in Lending Landscape

The Bank Decision

Earlier this week, Macquarie Bank, one of Australia’s largest and most flexible lenders for company and trust structures, made a sudden and sweeping move. On Monday, they restricted borrowers to just one company or one trust structure per individual. Two days later, they scrapped the option entirely. No more lending to property investors through company or trust entities.

This shift isn’t a quiet policy tweak; it’s a major withdrawal from a lending model that helped many investors grow faster and manage tax and asset protection through structured entities. Macquarie had built a strong reputation in this space, offering streamlined processes and fast approvals. That edge is now gone, and thousands of investors who relied on it are suddenly looking for their next move.

Why the Change

So why the abrupt pull-out? Macquarie pointed to social media-driven investment strategies, the growing trend of unlicensed advice spreading online about how to use company and trust structures to stretch borrowing capacity. Many investors have been guided into complex structures that don’t actually fit their financial goals or regulatory obligations.

Behind the scenes, there’s also pressure from regulators. ASIC and APRA have been watching the sharp rise in investor lending, now back to levels last seen in 2017. They’re concerned about borrowers using layered structures to mask exposure and inflate borrowing power. The message from the top is clear: tighten controls before it becomes a systemic risk.

What It Signals for the Market

Macquarie’s retreat sends a strong signal to the rest of the banking sector. When a major player exits a profitable niche this fast, it’s rarely a solo decision. Other banks are likely reviewing their own policies right now, weighing the same regulatory pressures. If they follow suit, we could see a wave of restrictions on company and trust lending across the board.

Investor lending already makes up around 40% of total home loans, driven by strong activity in Queensland, Western Australia, and the Northern Territory. Regulators are taking notice, and banks are acting pre-emptively to stay off their radar.

For property investors, this is more than a headline; it’s a wake-up call. The rules of lending are shifting, and those who adapt fastest will keep their portfolios growing while others stall.

Why This Matters for Property Investors

The Company/Trust Vehicle Strategy

For years, experienced investors have used companies and trusts as tools to build larger property portfolios. These structures offered tax advantages, asset protection, and the flexibility to manage multiple properties under separate entities. In many cases, they allowed investors to maximise borrowing power while keeping financial risk contained within each structure.

Macquarie Bank was one of the few lenders that truly understood this approach. Its lending policies made it easier for investors to scale quickly and strategically. With this option now gone, the model many investors relied on has effectively been shut down, forcing a rethink in how to fund and structure future purchases.

Risks Exposed

This move exposes a truth that often gets lost during boom periods: bank policies can change without warning. When your entire investment plan depends on what one lender allows, you’re giving up control. Relying too heavily on structure over substance leaves investors vulnerable when conditions shift.

Strong investors focus on fundamentals: serviceability, cash flow, yield, and the ability to hold through different market cycles. Structures can support your plan, but they should never be the plan. Those who ignored this balance now face higher friction, tighter options, and a need to reassess their exposure.

Revisiting the Property Investing Roadmap

This shake-up is a perfect time to step back and look at your Property Investing Roadmap. The core principles haven’t changed: cash flow still matters, yield still drives returns, and flexibility still wins in the long game. What’s shifted is how you access capital and manage your borrowing structure.

Revisit your numbers, speak with your broker, and run scenarios that use personal lending, non-bank options, or joint-venture models. The investors who adapt their structure while keeping their eyes on long-term goals will come out stronger.

This isn’t the end of opportunity. It’s the next stage of strategy.

The Bottom Line

Macquarie’s sudden withdrawal from company and trust lending marks a major turning point for property investors. It highlights how quickly financial institutions can reshape the rules and how essential it is for investors to stay informed, adaptable, and grounded in strong fundamentals.

This isn’t the end of structured investing; it’s a shift in the rules of engagement. Those who can pivot, reassess their borrowing strategies, and focus on cash flow and portfolio balance will continue to find opportunities where others see obstacles.

Lending conditions may tighten, but smart investors don’t wait for clarity; they move with it.

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