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ANZ tightens up home lending to companies
The big four banks have changed their mortgage credit requirements for home loans with a company as the borrower.
Australia and New Zealand Banking Group (ANZ) has become the latest lender to tighten up its policy when it comes to mortgage lending to companies, whether in their own capacity or as a trustee for a trust.
As of Thursday (8 January), ANZ ceased offering home loans in a company to new customers if they were not already an eligible ANZ customer and said it was limiting even eligible borrowers to a maximum loan-to-value ratio (LVR) of 70 per cent.
The change does not apply to lending to an individual trustee.
In an email to brokers on Friday (9 January), seen by The Adviser, ANZ revealed that new policy requirements will mean that only existing ANZ customers will be able to take out a home loan in a company if they have held an open ANZ lending product for at least six months (either in a personal or business account) or have had a term deposit, transaction, or saving account for at least 12 months (either in a personal or business account).
They must also be a director of the borrowing entity, hold a combined ownership of at least 25 per cent of the borrowing entity, provide a personal guarantee, and have “a satisfactory account history”.
Qualifying borrowers will be limited to a maximum LVR of 70 per cent.
The major bank told brokers that if they have any eligible applications in progress that were submitted before 8 January, the bank will utilise the old policy.
However, for new applications submitted on or after the effective date, the new policy will be applied.
If broker clients had a loan agreement in principle on the effective date, but want an increase to the loan or have any credit critical changes, the new policy will also apply.
Similarly, any applications that were resubmitted on or after 8 January will also be subject to the new policy.
ANZ advised brokers that they should review their pipeline and ensure all new applications meet the updated criteria before submitting any new loans for a home loan in a company.
It also advised that brokers identify any trust or company-structured applications and quickly communicate the changes to any impacted clients.
The reason for the decision has not been released.
Speaking to SPI sister's publication The Adviser about the change, Eva Loisance, principal broker at brokerage Finni, suggested the move was a good one.
The property investment broker said: “While the change doesn’t seem as dramatic as Macquarie – which stopped trust lending altogether – the decision to reduce LVR to 70 per cent is a well thought-out and a good strategy for the bank. It will help curbing higher‑risk borrowing and preventing ‘artificially positively geared’ within trust structures.
“At 70 per cent LVR, a single‑property trust is far more likely to become genuinely cash‑flow positive within a few years, unlike highly leveraged 90 per cent structures.
“The shift reduces the risk of trusts returning for additional debt based on unsustainable cash flow, or other trust lending, and signals a broader trend toward stronger equity positions and more resilient borrowing frameworks for investors.”
The Finni principal added that she was now “waiting on the last of the big banks to make their move on mortgage lending to companies”.
Banks pull back from mortgage lending to companies
ANZ is the latest lender to tighten up its policy for trust lending to companies, and the third major bank to do so after CBA and Westpac made similar moves.
On 18 December, Westpac ceased offering home and residential investment loans to a company or corporate trustee borrower via the retail bank.
Westpac said that these loans would only be available via its business bank and private wealth channels and would need to meet certain conditions.
For example, the applicant would need to have more than half of their income derived from self-employed business income or meet private wealth segmentation standards.
If they had an existing corporate trustee or company borrower loan and wanted to obtain a subsequent loan, the applicant would now only qualify if they met the criteria and had a business and wealth relationship-managed connection. They must also include a combination of active business lending and/or active business transaction accounts.
For new-to-bank customers, they would have to meet the eligibility requirement and have no existing mortgage, business lending, or business transaction accounts with the Westpac Group.
“We’re making this change to connect customers with the right expertise and tailored solutions, ensuring a more consistent and efficient experience,” the bank told brokers in December.
Westpac followed on the heels of the Commonwealth Bank of Australia (CBA), which adjusted its mortgage policy for loans to non-individual borrowers using company and trust structures so that only existing CBA customers could access these lending facilities.
The two majors changed their policies after Macquarie Bank stopped accepting all new home loan applications where the borrower was in a trust or company in late October 2025.
At the time, Macquarie said that the decision was driven by a range of factors, including rising application volumes, a mind to manage turnaround times and service standards, the emergence of strategies on social media aimed at maximising lending through trusts and companies, and upcoming AML Tranche 2 regulations, which will require additional verification steps for trust and company loans.
Indeed, there have been growing concerns that banks may be taking on more risk as a result of unlicensed financial advice emerging in the property investment space.
Last year, the Property Investors Council of Australia (PICA) – a not-for-profit association representing property investors, chaired by Empower Wealth broker Ben Kingsley – flagged that some players may be encouraging clients to buy property through trusts or SMSFs as a way to fast-track portfolios and bypass APRA’s loan servicing constraints designed to restrict such multiple purchases.
Speaking to The Adviser in November 2025, Kingsley said that while there was a legitimate place for trust or company structures in property investing – particularly for experienced investors seeking specific asset protection or tax outcomes – he warned that mass promotion of such strategies to unsophisticated consumers represents a growing problem for banks.
“The current level of unfettered promotion offering cookie-cutter advice, combined with relaxed credit assessment rules giving access to unlimited borrowings, is a recipe for the mischievous behaviour we are currently seeing by some operators,” Kingsley said.
“While off a low base, the sharp growth in lending volumes via these entities validates the increasing risks and supports PICA view of concerns re: current shortsighted self-interest and potentially the credit assessment oversight going on this space, which – if it continues – introduces real risks for the clients they are meant to be helping and increased financial system integrity risks.”
This article was first published in SPI's sister publication The Adviser.
