Are 'Unlimited' Trust Loans in Australia Becoming Harder to Do?

Trust borrowing has not disappeared, but major-bank access is narrowing

Trust and company borrowing for property purchases has become harder to place with several major banks. Based on lender policy settings and market feedback circulating in February 2026, a number of large lenders were either restricting new trust applications, applying tighter leverage limits, or narrowing eligibility to specific customer segments.

Why major banks are tightening

From a lender's perspective, trust and company structures can create additional complexity around control, income verification, guarantees, liability tracing, and legal recourse. In a more risk-sensitive credit environment, banks naturally favour cleaner files with simpler ownership structures and easier servicing analysis.

What this means for borrowers

• Major-bank options may be fewer: Especially for newly established trust structures with no broader banking relationship.
• Income and document review may be deeper: Trust deeds, company documents, tax returns, financials, and servicing support may all be scrutinised more closely.
• LVR expectations may be tighter: Some policies may cap leverage below what would be available in a standard personal application.
• Personal guarantees often still matter: Even when the property sits in a trust or company structure.

Does this mean trust borrowing is over?

No. It means trust lending is becoming more specialised. Second-tier banks and non-bank lenders may still consider trust and company structures where the borrower profile, asset, and servicing position make sense. The trade-off is that these deals now require better lender matching, clearer commercial reasoning, and stronger preparation.

An important distinction

The tightening discussed here mainly relates to buying property in the name of a trust or company and borrowing within that ownership structure. That is different from a borrower buying in a personal name while using income from a trading company or trust to support servicing. Those are related, but they are not the same credit scenario.

The practical conclusion is not that trust lending is finished. It is that trust lending now depends far more on structure, guarantees, documents, and lender fit than a simple major-bank rate comparison.