ANZ Implements Stricter Lending Policies for Trusts and Companies

Under the new policy, existing ANZ customers seeking home loans through trusts or companies must meet specific requirements, including:

• Being a director of the borrowing entity with at least a 25% ownership stake.
• Providing a personal guarantee.
• Maintaining a satisfactory account history.
• Holding an active ANZ lending product for a minimum of six months or an ANZ deposit account for at least 12 months.
• Adhering to a loan-to-value ratio (LVR) cap of 70%.

These measures aim to mitigate potential risks associated with complex lending structures and ensure that borrowers have a substantial stake in the entities through which they are securing loans.

For investors and business owners utilising trusts or companies for property acquisitions, these tightened criteria may necessitate a reassessment of financing strategies. It's advisable to consult with financial advisors to explore alternative lending options or to adjust existing structures to comply with the new requirements.

This development underscores the importance of staying informed about evolving lending policies and maintaining transparent financial practices to facilitate smoother loan approval processes.