The Commonwealth Bank of Australia has redrawn its investor calculators as major lenders rapidly follow suit.
The Commonwealth Bank of Australia (CBA) has unveiled a new serviceability framework for investment lending that hard‑codes the federal budget’s plan to limit negative gearing to new builds, which follows similar moves by a growing group of lenders.
In an email sent to brokers on Thursday afternoon (28 May), CBA said it had updated how it assessed investor home loan applications in light of the 2026–27 federal budget.
The bank noted that, under the proposed tax settings, “existing properties purchased for investment purposes after 12 May 2026 would not have the ability to continue negative gearing” but that “if an investor meets the classification of a new build then they will receive an exemption to negatively gear that property”.
CBA confirmed that the government’s timetable and grandfathering approach would also be mirrored in its credit policy.
For the purposes of its assessment, the bank said it would define “new builds” as any newly constructed property that genuinely added to housing supply.
This includes a newly constructed property, properties bought off the plan, a duplex constructed through a knock‑down rebuild replacing a single, freestanding house, and any residential construction on previously vacant land.
For new applications, the bank said that for investment properties purchased up to and including Tuesday, 12 May 2026, tax deductibility could continue to be applied to the customers’ investment home loans.
However, it stressed that the borrower needed to provide evidence to confirm that the property was purchased prior to that date and that brokers should leave clear comments in the application to support that treatment.
For investment properties purchased after Tuesday, 12 May 2026, CBA stated that tax deductibility would no longer be applied to the customers’ investment home loans unless the underlying security met one of the new-build definitions.
The bank has aligned refinance policy with the new rules.
CBA also warned brokers against stretching these settings to broader purposes, with this aimed at avoiding grey areas where investment‑related debt is blended with personal or other non‑deductible borrowing.
“You cannot apply tax deductibility for loans with mixed loan purposes, or where the purpose is not related to an eligible investment property security,” the bank said.
Treatment of in‑flight and Home Seeker files
CBA’s guidance also covered deals already in the pipeline.
The bank said all unconditional approvals issued before Tuesday, 12 May 2026, and up to 11:59pm AEST Thursday, 28 May, would remain valid under the former policy.
However, it noted that all purchase applications for a new investment property (excluding Home Seekers) that were decisioned between Tuesday, 12 May, and 11:59pm AEST Thursday, 28 May, and not yet unconditionally approved would be reassessed under the new rules when they return for further assessment.
The bank added that all in‑flight applications, including Home Seeker pre‑approvals, which had not been assessed by 11:59pm AEST Thursday, 28 May, would also be assessed under the new settings.
For existing Home Seeker applications, where negative gearing had been applied, CBA said brokers must edit and resubmit the file in ApplyOnline, so that it could be reassessed in line with the updated guidance.
CBA also emphasised that its systems were still catching up with the policy shift.
“Credit policy, processes, tools, and serviceability calculators are currently being updated to reflect these changes. Until these updates are complete, please ensure applications are submitted in line with the interim guidance and eligibility criteria outlined above,” it said.
“Please ensure your customers are aware these proposed federal budget changes may impact borrowing capacity and serviceability outcomes for some investment lending applications.”
Lenders release new investor serviceability calculators
CBA’s announcement comes amid a rapid wave of calculator changes across the market as lenders adjust to the budget’s negative‑gearing overhaul.
Macquarie Bank was the first major player out of the blocks, removing most negative‑gearing add‑backs from its serviceability tests for new investment loans.
National Australia Bank (NAB) followed with an approach that generally limited recognition of negative‑gearing benefits to new‑build stock for fresh applications, while Connective Horizon’s white label product, funded by non‑bank Brighten, told brokers it would no longer include negative‑gearing benefits in servicing for established‑property deals.
Great Southern Bank has taken a similar stance, with Australia and New Zealand Banking Group (ANZ) advising brokers on Wednesday that investment properties purchased after 12 May would only attract negative‑gearing treatment in servicing if they qualified as new builds.
Suncorp Bank also said applications not unconditionally approved by 27 May would be reassessed under revised settings.
[Related: Brokers split on how fast banks should rewrite investor rules]
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