27/05/2026
🚨 Property investors: borrowing power may already be shrinking before any official negative gearing changes even happen.
Some lenders are reportedly tightening how they assess investor loans by removing negative gearing tax benefits from serviceability calculations.
What this could mean:
🏠 Lower borrowing capacity for investors
📉 Some estimates suggest reductions of around 20%
💰 Example: a $750k borrowing limit potentially dropping to $600k
⚠️ Some pre-approvals reportedly being reduced or withdrawn
Who may be impacted most?
• Investors buying existing properties
• Borrowers relying on rental loss tax benefits to boost serviceability
Who may still benefit?
✅ Newly built properties adding housing supply may still retain negative gearing advantages
✅ Existing investors who purchased before 12 May 2026 may have greater protection under proposed rules
The big takeaway:
Even proposed policy changes can affect lending policy BEFORE laws officially change.
If you’re considering investing, refinancing, or purchasing an investment property, timing and lender choice may now matter more than ever.
