NAB Tightens Mortgage Borrowing After Property Tax Break Removed
National Australia Bank Ltd. has tightened its home lending rules after the Australian government removed a perk that allowed property investors to claim mortgage interest payments as a tax deduction. The bank will not include the effects of the tax break for properties sold after May 12, which could reduce how much buyers are able to borrow. The changes have already caused a slowdown in the housing market, with mortgage brokers reporting reduced borrowing capacity for some property investors and lenders such as Westpac Banking Corp. and Macquarie Group Ltd. also shifting their loan determination factors.
β€ National Australia Bank (NAB) has tightened mortgage lending rules following the Australian government's removal of property investor tax breaks on mortgage interest. β€ This change reduces borrowing capacity for some investors by up to 30%, leading to a slowdown in the housing market and withdrawal of loan deals by mortgage brokers. β€ Other major lenders like Westpac and Macquarie have also adjusted their loan determination factors, signaling a significant shift in the Australian property market.
