NAB tightens investor lending as negative gearing pressure ratchets up
It echoes similar moves by Westpac and Macquarie, with CBA and ANZ still reviewing their policies in the wake of the government’s negative gearing ban.
National Australia Bank has tightened up its lending to investors using negative gearing as pressure builds on Australia’s banks to adapt their policies to meet responsible lending obligations.
Capital Brief can reveal NAB has instructed frontline bankers and mortgage brokers negative gearing would only be applied to new builds going forward, in line with the federal government’s policy proposal.
“While these changes are not yet legislated, they represent a known and foreseeable factor that may affect a customer’s financial position over the life of a loan. As part of our responsible lending obligations, we take foreseeable changes like this into account when assessing serviceability,” a NAB spokesperson told this publication in response to questions.
“Our focus is making sure customers can comfortably meet their repayments over the life of the loan, not just at the point of approval.”
