Major Lenders Including NAB Tighten Investor Servicing Ahead of Negative Gearing Reforms

Multiple lenders, including NAB, are already hardwiring Labor's proposed negative gearing and CGT changes into their servicing calculators — tightening investor borrowing capacity before the reforms have passed Parliament.

What's Happening

The Adviser reported on 26 May 2026 that at least two major lenders have updated their credit policies to preemptively reflect the Albanese Government's planned negative gearing reforms. NAB has specifically adjusted its investor loan serviceability calculations, removing or reducing the income "add-back" that investors have historically relied upon to boost their assessable income.

Prime Minister Albanese has already confirmed the CGT and negative gearing reform bill's introduction date, making this policy shift a near-certainty that lenders can no longer defer.

How Investor Borrowing Capacity Is Shrinking

Even if your income and assets are unchanged, these lender policy updates may have already reduced how much you can borrow as a property investor:

According to The Adviser, at least two lenders had announced investor servicing resets by 26 May 2026, with NAB among those moving earliest.

The Non-Bank Alternative

For property investors whose borrowing capacity has been compressed by bank policy updates, non-bank lenders like MPFG Capital assess each application on its individual merits rather than applying blanket system-wide policy cuts.

Non-bank lenders are not automatically subject to the same pre-emptive policy overhauls that major ADIs (Authorised Deposit-taking Institutions) implement across all investor loans simultaneously. This creates a meaningful lending gap — particularly for:

• Self-employed investors with complex income structures
• Property investors with multiple loans whose servicing calculations are most affected
• Borrowers who use rental income as a key component of their serviceability

Key Takeaways

• Multiple major lenders including NAB are tightening investor serviceability before negative gearing reforms become law
• Your investor borrowing capacity may have fallen without any change to your personal finances
• Non-bank lenders like MPFG Capital offer an alternative assessment pathway for investors navigating tightening mainstream credit policies
• If your pre-approval has been reduced or your application declined recently, a non-bank review of your position is worth exploring

This article provides general information only and does not constitute financial or investment advice. Contact a licensed mortgage broker or financial adviser to discuss your individual circumstances.