Banks Are Tightening Trust Lending… And Your Borrowing Power Could Change
Banks are pulling back from trust lending… and most property investors don’t understand why.
While APRA has reinforced the 6x Debt-to-Income (DTI) rule, the bigger story is what’s happening inside bank credit policy - particularly around trust structures.
Some lenders have tightened or stepped away from trust lending altogether.
Why?
Because for the past few years, certain strategies have been pushed hard - suggesting investors could increase borrowing power by purchasing properties inside trusts, ignoring debt if cash flow was neutral, and stretching beyond traditional serviceability limits.
But what happens when interest-only loans expire?
What happens when you try to refinance while sitting above the 6x DTI cap?
And what happens if your borrowing strategy only worked inside a narrow policy window that no longer exists?
In this episode of the NO BS Property Investing Podcast, Julian sits down with Mark Davis (23-time Broker of the Year from the Australian Lending & Investment Centre) to unpack:
✅ Why banks are pulling back from trust lending
✅ How the 6x Debt-to-Income (DTI) limit really works
✅ The refinancing risks investors aren’t considering
✅ What happens when interest-only periods end
✅ Why trusts don’t automatically increase borrowing power
✅ When trust structures actually make sense
✅ How to build wealth sustainably without chasing loopholes
Key moments:
00:01:00 What's actually changed in lending
00:02:20 The 6x debt-to-income cap explained
00:04:00 Banks pulling out of trust lending
00:07:00 The Macquarie self-certification problem
00:08:00 Why trusts reduce borrowing for most people
00:10:00 Financial influencers and unlimited borrowing myths
00:11:00 The interest-only expiry trap
00:13:20 The narrow window where trusts work
00:15:40 Who trusts actually suit
00:18:20 What most investors really need
Hit play now to understand the new lending landscape and protect your portfolio from costly mistakes.
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👉Get In Touch With ALIC
https://www.ripehouseadvisory.com.au/lp/24/8/investment-lending-sign-up
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👉Access our “Top-Performing Suburbs” report to see the highest growth suburbs right now:
https://www.ripehouseadvisory.com.au/lp/25/09/pd/top-performing-suburbs-report-2025
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👉Find out more about the Lolli App and create your free account:
https://lolli.com.au/
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✅About Mark From ALIC✅
Ranked as Australia’s leading residential broker for the past seven years, Mark Davis is a director and investment lending manager at ALIC.
Winning 23 times broker of the year and $4.5 billion+under management - he co-founded the company in 2009 and has forged it into one of Australia’s most respected brokerages.
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✅About Ripehouse Advisory✅
Through their innovative ‘done for you’ property investment system, Ripehouse Advisory simplifies the investment process - enabling investors to build a property portfolio that generates substantial returns.
With a focus on long-term relationships, personalised strategies, and thorough research, Ripehouse Advisory empowers investors to create a financial legacy that can be passed on to future generations.