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Macquarie Bank Updates Investor Loan Policies in Response to Negative Gearing Reforms

Implications for Property Investors and Borrowing Capacity

Macquarie Bank Updates Investor Loan Policies in Response to Negative Gearing Reforms?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In response to recent federal budget reforms restricting negative gearing to new property constructions, Macquarie Bank has revised its investor loan assessment policies.
Effective 18 May 2026, the bank will exclude negative gearing benefits from serviceability calculations for investment properties purchased after 12 May 2026, unless they are new builds contributing to housing supply.

Negative gearing has traditionally allowed investors to offset losses on investment properties against other income, thereby reducing taxable income and enhancing borrowing capacity. The federal government's decision to limit this benefit to new constructions aims to stimulate housing supply and address affordability issues. Macquarie Bank's swift policy adjustment reflects its commitment to aligning with regulatory changes and prudent lending practices.

For property investors, this policy shift means that the tax benefits associated with negative gearing will no longer enhance borrowing capacity for purchases of existing properties. This change could lead to a reassessment of investment strategies, with a potential shift towards new developments to retain tax advantages. Additionally, investors may need to provide more substantial evidence of income and financial stability to meet serviceability requirements without the negative gearing add-backs.

It's crucial for investors to stay informed about these policy changes and consider their implications on investment decisions. Consulting with financial advisors or mortgage brokers can provide tailored advice to navigate the evolving lending landscape and identify opportunities that align with individual investment goals.

In summary, Macquarie Bank's policy revision in response to negative gearing reforms underscores the dynamic nature of the property investment sector. Investors are encouraged to adapt their strategies to align with new regulations and explore avenues that continue to offer financial benefits within the updated framework.

Published:Sunday, 14th Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Closing Costs:
The expenses over and above the price of the property incurred by buyers and sellers when transferring ownership of a property.