iscover 
Loisance explains that while trusts have long been used for asset protection and tax benefits, they also come with complexity and compliance risks that have made lenders increasingly cautious.
Macquarie’s decision to exit the trust lending space entirely shocked brokers and investors, arriving without warning and signalling potential concerns over ethical and administrative issues.
Other banks, including Westpac and St.George, have already made trust lending more difficult, but Macquarie’s full retreat marks a turning point in the market.
In contrast, the Commonwealth Bank of Australia quickly moved to position itself as an alternative, offering to apply negative gearing to trust structures to boost borrowing capacity.
Loisance notes that the changes will prompt investors to reassess whether a trust structure truly aligns with their goals, as many are now advised that simpler ownership models may be more effective.
She also cautions that unqualified professionals, such as some buyer’s agents, are influencing structural decisions they aren’t licensed to advise on, heightening investor risk.
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