ANZ announces new negative gearing policies

ANZ has announced a significant shift in its lending policy, effectively tightening how it accounts for negative gearing in serviceability calculations. Under the new guidelines, for contracts executed after the designated cutoff, negative gearing will only be recognized if the property qualifies as a new build. The bank maintains that this proactive stance is a reflection of its responsible lending obligations, even as the broader regulatory landscape regarding capital gains tax reforms remains subject to ongoing political debate.

Did You Know? ANZ has established a firm deadline of close of business on Thursday, 28 May 2026, for all in-flight applications; any file not unconditionally approved by this time will be subject to the new, stricter eligibility criteria.

Implications for Current Applications

The policy change creates a clear divide for brokers managing existing pipelines. Applications that have already secured unconditional approval will remain unaffected by these adjustments. However, any pending application that fails to reach unconditional status by the 28 May 2026 deadline will be forced into a reassessment under the new, more restrictive criteria.

Despite these changes, the bank has provided clarity for specific lending scenarios. Refinance applications for properties purchased on or before 12 May 2026 will continue to retain negative gearing in serviceability assessments. Similarly, top-ups and cash-out requests remain eligible, provided the capital is allocated toward the purchase or improvement of a qualifying property.

Expert Insight: By moving ahead of legislative finality, ANZ is signaling a shift toward a more conservative credit risk environment. This preemptive approach suggests that lenders may be increasingly sensitive to the potential impact of proposed tax reforms on borrower serviceability, prioritizing long-term stability over current market trends.

Looking Ahead: Market Consequences

As the market approaches these deadlines, brokers and investors may face a period of heightened adjustment. If the proposed legislative reforms are eventually enacted, other lenders could potentially follow ANZ’s lead in aligning their internal serviceability models with these new parameters. Analysts expect that the continued ability to deduct losses against rental income—which ANZ has confirmed it will maintain—will remain a critical factor in how property investors approach their portfolios in the coming months.

Frequently Asked Questions

What happens to pending loan applications that are not yet approved?

Any application not unconditionally approved by close of business on Thursday, 28 May 2026, will be reassessed. Negative gearing will only be applied to those that meet the new build eligibility criteria.

Federal Budget 2026 Property Changes: Negative Gearing & CGT Explained

Are existing property owners impacted by this policy change?

Refinance applications for properties purchased on or before 12 May 2026 will retain negative gearing in serviceability assessments. The bank will continue to allow deductions against rental income regardless of the broader changes.

Is this policy a result of new legislation?

No. ANZ stated that its position reflects responsible lending obligations, noting that the proposed changes to the tax landscape have not yet been legislated.

How do you believe these shifts in lending criteria will influence the strategy of property investors in the current economic climate?