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

Negative gearing has traditionally allowed investors to offset property-related losses against other income, reducing taxable income and enhancing borrowing capacity. Macquarie's policy change means that for established properties purchased post-12 May 2026, these tax benefits will no longer be considered in loan assessments, potentially reducing the amount investors can borrow.

For investors with contracts signed on or before 12 May 2026, existing negative gearing considerations remain unchanged. However, those entering the market after this date, particularly for established properties, may find their borrowing capacity diminished.

Other major lenders, including Westpac, NAB, Commonwealth Bank, and ANZ, are reportedly reviewing their policies in light of the budget changes. While Macquarie is the first to implement these adjustments, it is anticipated that similar policy revisions will follow across the banking sector.

Investors are advised to consult with financial advisors or mortgage brokers to understand how these changes may affect their investment strategies and borrowing capacities.