This month it announced it will no longer consider negative gearing tax benefits when calculating a borrower’s ability to make repayments.
Negative gearing allows property investors to claim losses on rental properties as a tax deduction. Lenders will typically count this tax benefit when determining if you have enough cash to pay back your loan.
Bankwest customers applying for an investment loan will now need to show their cash flow is sufficient to service the loan, without the tax benefit.
Well, the easy option for investors is to go to another bank. But which bank?
Investor lending has become stricter in recent times as Australia’s financial regulator the Australia Prudential Regulation Authority aims to cap growth in investor loans at 10 per cent per year.
The good news for investors is that Bankwest is just one fish in a big pond of lenders, and record low interest rates are still easy to find. So shop around and make sure you’re getting the best loan for you.
Ready to invest? View our current listings for sale.
Need to boost your cash flow? Talk to us about landlording.