New Trust Lending Changes

Hi all,

I’ve been made aware of some significant changes in how investment property loans are being handled when the borrowing entity is a trust, and I wanted to pass this on.

Mortgage brokers have been advised that several major lenders are now pulling back from lending to trusts through the broker channel. In many cases they are either declining these applications outright or pricing them so uncompetitively that they’re effectively inaccessible; some reportedly adding up to 150 bps to the interest rate.

Interestingly (no pun intended), this shift appears to be limited to broker-sourced loans for now. Approaching lenders directly, particularly through business banking, or using a broker with access to business banking channels still seems to be a workable pathway.

Thought you should be aware.

Regards,