Market players continue to update property investor serviceability guidelines ahead of looming tax changes.
Commonwealth Bank of Australia (CBA) is one the latest major lenders to revise its treatment of negative gearing, with new guidelines having taken effect on 29 May 2026. After that date, the major bank will only take into account negative-gearing tax benefits when assessing an investor's borrowing power if the property qualifies under certain rules. That includes construction loans for building a new property, buying a newly-built property, or refinancing or increasing a loan on a property the investor already owned before 13 May 2026.
“Following the federal budget announcement, CBA has updated how we assess negative gearing in investor home loan applications," a CBA spokesperson told Australian Broker. "This change reflects the government’s announced policy direction and is designed to provide greater clarity and consistency for customers as the proposed measures progress."
Also in May, ANZ also tightened its lender guidelines surrounding negative gearing. Under the revised policy, ANZ will only include negative gearing benefits in serviceability assessments for established residential properties where a signed contract of sale was in place on or before 12 May 2026. For purchases contracted after that date, negative gearing will only be taken into account if the property qualifies as a new build.
The updated changes among several lenders come as the Labor Party's controversial 2026 to 2027 financial year budget — which would scrap the blanket capital gains tax (CGT) discount and limit negative gearing to newly-built properties — inches closer to approval.
Australian Prime Minister Anthony Albanese brought the government’s updated federal budget before Parliament last Thursday in what turned into a heated debate.
CBA and ANZ's moves come after several other lenders, including National Australia Bank (NAB), Macquarie Bank, Great Southern Bank and Suncorp, have already made similar changes.
While the budget measures have not yet been legislated, the government has announced they will apply from Tuesday, 12 May 2026 if approved. That means, moving forward, property investors would only be able to access negative gearing tax breaks for newly-built properties.
The policy is aimed at helping first-time homebuyers get a foothold in the market. However, critics warn it could have the opposite effect: with fewer investors supplying rental properties, more renters would be competing for a smaller pool of available homes. That dynamic could tighten the rental market, drive up rents and ultimately make it even harder for some buyers to break into the property market.
There are also broader knock-on effects for investor behaviour.
Westpac estimated that the combined impact of the changes could lead to new investor activity plunging by as much as 34% in the near-term, with the remaining investors pivoting their focus to newly-built homes.
"There are clear opportunities in first-time homebuyer activity, new-build lending, regional housing, small business finance and serviceability support," said Simon Bednar, chief executive officer at Finsure. "But major tax changes could also alter investor appetite, client behaviour and the way brokers discuss long-term property decisions."
Barry Saoud, chief executive of mortgage and commercial lending at non-bank lender Pepper Money, added: "For some investors, that will mean looking beyond individual ownership and becoming more comfortable with lending in companies, trusts and self-managed super funds (SMSFs)."
Adding to the pressure are broader economic headwinds — including higher interest rates, inflationary pressures, global instability and a tightening jobs market — all of which are making Australians more cautious than ever to buy, and pushing even more people into an already overcrowded rental market.
